Question

Anchored inflationary expectations are people's expectations of future inflation that:

A. increase if inflation rises temporarily.
B. are based on the unemployment rate.
C. do not change if inflation rises temporarily.
D. are based on the level of potential output.

Answer 1

C) do not change if inflation rises temporarily

Step-by-step explanation:

Anchored in economics means being insensitive to certain information due to a bias or belief. Anchored inflationary expectations is basically the belief that inflation won't raise