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If Inflation Is Viewed as a "Sustained Increase in the General

Question 80

Multiple Choice

If inflation is viewed as a "sustained increase in the general level of prices," an increase in the price of a specific market basket of goods from $34.50 six months ago $35.71 today would suggest that the annual rate of inflation is:


A) 3.4%.
B) $1.21.
C) 3.5%.
D) 7.0%.

Correct Answer:

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