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Author Question: According to the theory of adaptive expectations, if the inflation rate has been 4.2 percent for the ... (Read 68 times)

berenicecastro

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on: Jun 30, 2018
According to the theory of adaptive expectations, if the inflation rate has been 4.2 percent for the last ten years, people will expect next year's inflation rate to be:
 a. 4.2 percent.
  b. higher than 4.2 percent.
  c. lower than 4.2 percent.
  d. 0; that is, they will expect no inflation.
  e. 8.4 percent.

Question 2

The quantity of gasoline demanded will respond more to a change in price over three weeks than over three years.
 a. True
  b. False
  Indicate whether the statement is true or false


cswans24

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


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