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Suppose That the Annual Expected Rates of Inflation Over Each

Question 17

Multiple Choice

Suppose that the annual expected rates of inflation over each of the next five years are 5 percent,6 percent,9 percent,13 percent,and 12 percent,respectively.What is the average expected rate of inflation over the 5-year period?


A) 6%
B) 7%
C) 8%
D) 9%
E) 10%

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