During the 1960s,when confronted with moderate and stable inflation,people tended to form adaptive expectations of future inflation rates.

Question

Quizplus · Accepted Answer

During the 1960s, adaptive expectations theory became popular, which suggests that people form expectations for future inflation based on past experience. In the context of moderate and stable inflation during that time period, people were likely to form adaptive expectations of similar inflation rates in the future.

During the 1960s,when Confronted with Moderate and Stable Inflation,people Tended