Suppose we have the flowing inflation and expectations data

Year Expected Inflation Actual Inflation

1 0% 0%

2 0% 2%

3 2% 4%

4 4% 6%

In year 5, which of the following would be true between Keynesians (K), montansts (M) and rational expectations (RE) thet concerning the expected rate of inflation?

A. K-2% M O% RE 67

B. K-0% M 2% RE 4%

C. K-0% M 4% RE 6%

D. K 0% M 6% RE 10%

E. None of the above is the correct answer