Assume that the expected rates of inflation over the next 5 years are 4 percent, 7 percent, 10 percent, 8 percent, and 6 percent, respectively. What is the average expected inflation rate over this 5-year period?

Question

Quizplus · Accepted Answer

To find the average expected inflation rate, add the rates together and divide by the number of years: (4% + 7% + 10% + 8% + 6%) / 5 = 35% / 5 = 7.0%.

Assume That the Expected Rates of Inflation Over the Next