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According to the rational expectations theory, if the last three years of inflation were 0 percent, 2 percent, and 4 percent, respectively, one would expect
According to the rational expectations theory, if the last three years of inflation were 0 percent, 2 percent, and 4 percent, respectively, one would expect inflation the following year to be
percent.
a) 4
b) 2
c) 0
d) 3
e) 6
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