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We consider adapting the transmission rate to maximize the goodput, i.e., the amount of data transmitted without error, over a continuous Markov flat-fading wireless channel. In particular, we consider schemes in which transmitter channel state is inferred from degraded causal error-rate feedback, such as packet-level ACK/NAKs in an automatic repeat request (ARQ) system. In such schemes, the choice of transmission rate affects not only the subsequent goodput but also the subsequent feedback, implying that the optimal rate schedule is given by a partially observable Markov decision process (POMDP). Because solution of the POMDP is computationally impractical, we consider simple suboptimal greedy rate assignment and show that the optimal scheme would itself be greedy if the error-rate feedback was non-degraded. Furthermore, we show that greedy rate assignment using non-degraded feedback yields a total goodput that upper bounds that of optimal rate assignment using degraded feedback. We then detail the implementation of the greedy scheme and propose a reduced-complexity greedy scheme that adapts the transmission rate only once per block of packets. We also investigate the performance of the schemes numerically, and show that the proposed greedy scheme achieves steady-state goodputs that are reasonably close to the upper bound on goodput calculated using non-degraded feedback. A similar improvement is obtained in steady-state goodput, drop rate, and average buffer occupancy in the presence of data buffers. We also investigate an upper bound on the performance of optimal rate assignment for a discrete approximation of the channel and show that such quantization leads to a significant loss in achievable goodput.