If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is
A) irrational.
B) rational.
C) adaptive.
D) reasonable.
Answer: C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is
A) irrational.
B) rational.
C) adaptive.
D) reasonable.
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