A what was the average expected inflation rate over the


Assume that, at the beginning of 1981, the expected inflation rate for 1981 was 13%; for 1982, 9%; for 1983, 7%; and for 1984 and thereafter, 6%.

a. What was the average expected inflation rate over the 5-year period 1981-1985? (Use the arithmetic average.)

Solution Preview :

Prepared by a verified Expert
Finance Basics: A what was the average expected inflation rate over the
Reference No:- TGS02374616

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)