Assume that prices have risen in a given economy by an average of 5 percent over the last nine years. If consumers base their expectations about future price movements on that knowledge alone their forecasts rely on ________
A) reverse expectations
B) adaptive expectations
C) rational expectations
D) monetary expectations
B
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Samia makes $8,000 a month. Samia spends $2,500 on rent and related household expenses, $500 on food, $200 on clothes, $500 on entertainment and $600 on transportation. She always keeps $200 for things like the car breaking down
$3,500 is invested in the stock market. Which of the following statements is TRUE? A) The transactions demand for money is $4,300, the precautionary demand is $200 and the asset demand is $0. B) The transactions demand for money is $4,300, the precautionary demand is $200 and the asset demand is $3,500. C) The transactions demand for money is $3,500, the precautionary demand is $200 and the asset demand is $4,300. D) The transactions demand for money is $4,300, the precautionary demand is $3,500 and the asset demand is $200.
In economics, a free rider is someone who relies on others to pay his bills
Indicate whether the statement is true or false