The term "inflation expectations" refers to the:
A) amount of inflation that is expected by an appointed panel of research economists.
B) amount of inflation that is expected by businesses and consumers.
C) target level of inflation that is set by the Federal Reserve.
D) target level of inflation that is set by fiscal policymakers.

Question

Quizplus · Accepted Answer

Inflation expectations refer to the amount of inflation that businesses and consumers anticipate in the future. This anticipation can influence their economic decisions, such as spending, saving, and wage demands.

The Term "Inflation Expectations" Refers to The