Business, 06.05.2020 20:13 dragon2565

If during the past decade the average rate of monetary growth has been 5% and the average inflation rate has been 5%, everything else held constant, when the Federal Reserve announces that the new rate of monetary growth will be 10%, the adaptive expectation forecast of the inflation rate is :

a. more than 10%.

b. 5%.

c. 10%.

d. between 5 and 10%.

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If during the past decade the average rate of monetary growth has been 5% and the average inflation...