An economist predicts that the annual inflation rate will be 7% for 4 years and 6% for the next 6 years. Accordingly, what is the average annual price change forecast for the ten-year period? Select one: a.1.894637 b.1.859389 c.2.003392 d.2.080069 e.2.041727

An economist predicts that the annual inflation rate will be 7% for 4 years and 6% for the next 6 years. Accordingly, what is the average annual price change forecast for the ten-year period? Select one: a.1.894637 b.1.859389 c.2.003392 d.2.080069 e.2.041727

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 2SQP

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Question

An economist predicts that the annual inflation rate will be 7% for 4 years and 6% for the next 6
years. Accordingly, what is the average annual price change forecast for the ten-year period?
Select one:
a.1.894637
b.1.859389
c.2.003392
d.2.080069
e.2.041727
k

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