In forming their expectations about inflation, individuals can be influenced by
A) the current rate of inflation.
B) existing wage settlements.
C) anticipated action by the Federal Reserve System.
D) rates of inflation experienced in the recent past.
E) all of the above.

Question

Quizplus · Accepted Answer

Individuals form their expectations about inflation based on a variety of factors, including the current rate of inflation, existing wage settlements, anticipated actions by the Federal Reserve System, and rates of inflation experienced in the recent past. All these factors can influence how people predict future inflation, as they provide information on economic conditions and policy directions.

In Forming Their Expectations About Inflation, Individuals Can Be Influenced