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    Modern Principles of Economics
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    Exam 12: Inflation and the Quantity Theory of Money
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    Suppose a Nation's Inflation Rate Is 5
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Suppose a Nation's Inflation Rate Is 5

Question 272

Question 272

Multiple Choice

Suppose a nation's inflation rate is 5.8% from Year 1 to Year 2. If the CPI in Year 2 is 200, what was the CPI in Year 1?


A) 180
B) 189
C) 190
D) 208

Correct Answer:

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