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The expected inflation rate is the
A)
rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets.
B)
inflation rate that the Federal Reserve system announces as the policy goal for the year.
C)
inflation rate that people forecast and use to set the money wage and other money prices.
D)
inter-annual, non-energy inflation rate.
E)
same as the actual inflation rate.
A major factor in determining the rational expectation of inflation is
A)
forecasts of fiscal policy.
B)
the recent past behavior of the stock market.
C)
forecasts of the Fed’s monetary policy.
D)
the previous month’s unemployment rate.
E)
the size of the budget deficit.
Because money growth is a major component determining the inflation rate, in order to forecast inflation we should forecast actions by the
A)
U.S. Mint.
B)
Fed.
C)
Office of the Treasury.
D)
President.
E)
Congress.
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