If an inflation forecast is based on expected monetary growth, it is likely to be
A) historical.
B) rational.
C) logical.
D) adaptive.

Question

Quizplus · Accepted Answer

If an inflation forecast is based on expected monetary growth, it is rational because it is based on logical reasoning and current/relevant information rather than relying solely on past data (historical) or adapting to new information (adaptive).

If an Inflation Forecast Is Based on Expected Monetary Growth