A rational expectation of inflation is
A. how economists make perfect forecasts of inflation.
B. how unexpected inflation affects the economy.
C. why unexpected inflation redistributes income.
D. a forecast of inflation that uses all relevant information.
Answer:D
A rational expectation of inflation is
A. how economists make perfect forecasts of inflation. B. how unexpected inflation affects the economy. C. why unexpected inflation redistributes income. D. a forecast of inflation that uses all relevant information.