According to the Rational Expectation Theory, A) people reformulate their expectations of inflation once a change in the inflation rate has occurred. B) people never reformulate their expectations of...



According to the Rational Expectation Theory,






A) people reformulate their expectations of inflation once a change in the inflation rate has occurred.

B) people never reformulate their expectations of inflation.

C) expectations of inflation are based only on past values of the inflation rate.

D) people reformulate their expectations of inflation once a change in policy has occurred.

E) none of the above.




Jun 08, 2022
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