The expected inflation rate is the
A) inflation rate that people forecast and use to set the money wage and other money prices.
B) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets.
C) inter-annual, non-energy inflation rate.
D) inflation rate that the Federal Reserve system announces as the policy goal for the year.
E) same as the actual inflation rate.

Question

Quizplus · Accepted Answer

The expected inflation rate is the inflation rate that people forecast and use to set the money wage and other money prices. This is based on their expectations about future economic conditions, policy changes, and other factors. It may or may not be the same as the actual inflation rate.

The Expected Inflation Rate Is the