Monetarists assume that people form their expectations only by
A)looking forwards
B)looking backwards.
C)using all available information.
D)using publicly available forecasts.

Question

Quizplus · Accepted Answer

Monetarists assume that people form their expectations by looking backwards, meaning they base their expectations on past experiences and trends rather than current or future information. This assumption is linked to the idea that changes in money supply and price levels will only affect the economy in the long run, rather than immediately.

Monetarists Assume That People Form Their Expectations Only by