Related to the Economics in Practice on p. 645: Surveys by the bank of England suggest that consumers tend to expect future inflation to be
A) what they perceive past inflation to have been.
B) equal to the actual estimates of past inflation made by the government.
C) directly related to the interest rate.
D) relatively unpredictable.

Question

Quizplus · Accepted Answer

Surveys conducted by the bank of England indicate that consumers tend to base their expectations of future inflation on their perception of past inflation. This suggests that their expectations may not always align with the actual estimates of past inflation made by the government.

Related to the Economics in Practice on P