Which of the following choices accurately describes inflationary expectations?
1) They are based on the public's belief that the Fed will try to attain the 2% inflation target.
2) They are expectations of the Fed members.
3) They are based on the public's belief that the Fed will try to attain the 2% inflation target.
4) The Fed must have public credibility in order to influence inflationary expectations.
5) They are expectations of the public.