If expectations about inflation are adaptive,they are ________.
A)not based on all available,relevant information
B)backward-looking
C)likely to change slowly
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Adaptive expectations are based on past experiences and are backward-looking. They may not take into account all available information and tend to change slowly as individuals adjust their expectations over time. Therefore, all of the above options are true.

If Expectations About Inflation Are Adaptive,they Are ________