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Many Economists View a 3% Annual Inflation Rate as "Acceptable

Question 279

Multiple Choice

Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Suburban cost you five years from now, if today's
Price is $48,000?


A) $41,405
B) $48,000
C) $54,024
D) $55,200
E) $55,645

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