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05-06-2023
Business

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Suppose that a firm tries to forecast the monthly inflation rate of July using the adaptive. expectations and following information. April Inflation : 5,2%
May Inflation : 6,8%
June Inflation : 5,7%
Firm assigns a weight of 0.2 to April inflation rate, a weight of 0.3 to May inflation and a weight of 0.5 to June inflation. What may be the firm's expectation fort he July monthly inflation rate.,

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