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.
a
Economics
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Looking at the U.S. balance of payments for the last two decades, how have the current account and the capital and financial account changed?
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Which of the following equations represent Taylor Rule?
A) rFF = rFF* - a(p – p*) - b B) rFF = rFF* + a(p – p*) + b C) rFF = rFF* - a(p – p*) + b D) rFF = rFF* + a(p + p*) + b
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