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Which of the Following Statements Is Correct If We Apply

Question 113

Multiple Choice

Which of the following statements is correct if we apply the "rule of 70" to a known rate of inflation?


A) We would be able to calculate the corresponding rate of unemployment.
B) We could determine when the value of a real asset will approach zero.
C) We could calculate the number of years it will take for the price level to double.
D) We could calculate the size of the GDP gap.

Correct Answer:

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