Author Question: According to the adaptive expectations theory, after many years of rising prices, people tend to ... (Read 57 times)

maychende · **on:** Jun 30, 2018

According to the adaptive expectations theory, after many years of rising prices, people tend to ignore past experience in predicting the future rate of inflation.
a. True
b. False
Indicate whether the statement is true or false

Question 2

During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Save as much as possible.
b. Spend money as fast as possible.
c. Invest as much as possible.
d. Lend money.