According to rational expectations theory,if the last three years of inflation were 0%,2%,and 4%,respectively,one would expect inflation the following year to be:
A) 4%.
B) 6%.
C) 2%.
D) 0%.
E) 3%.

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The Answer of According to rational expectations theory,if the last three years of inflation were 0%,2%,and 4%,respectively,one would expect inflation the following year to be:
A) 4%.
B) 6%.
C) 2%.
D) 0%.
E) 3%.

According to Rational Expectations Theory,if the Last Three Years of Inflation