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If the CPI in 2004 is 200,and in 2005 the CPI is 180,the rate of inflation from 2004 to 2005 is


A) 20%.
B) 10%.
C) 0%.
D) -10%.

E) A) and D)
F) All of the above

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From 1950-2011 the price level in the United States increased more than.


A) twofold.
B) threefold.
C) sixfold.
D) ninefold.

E) B) and C)
F) A) and B)

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Changes in stock prices


A) do not affect people's wealth and their willingness to spend.
B) affect firms' decisions to sell stock to finance investment spending.
C) occur in regular patterns.
D) are unimportant to decision makers.

E) A) and C)
F) A) and B)

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If the aggregate price level at time t is denoted by Pt,the inflation rate from time t - 1 to t is defined as


A) πt = (Pt - Pt - 1) / Pt - 1.
B) πt = (Pt + 1 - Pt - 1) /Pt - 1.
C) πt = (Pt + 1 - Pt) /Pt.
D) πt = (Pt - Pt - 1) /Pt.

E) A) and D)
F) A) and C)

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