Over a 10-year period, the Consumer Price Index doubled.On the basis of this information and using the rule of 70, we can say that the average annual rate of inflation over this period was approximately

Question

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The rule of 70 states that to find the doubling time of an investment or inflation rate, you divide 70 by the annual growth rate. Here, 70 divided by 10 years gives an approximate annual inflation rate of 7 percent.

Over a 10-Year Period, the Consumer Price Index Doubled