Question
Asked Mar 2, 2019

How long would it take for the price level to double if inflation persisted at the following percentages?

 17.5 percent per year

 35 percent per year

3.5 percent per year 

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Expert Answer

Step 1

a.)

Years to double:

If the inflation rate is 17.5 percent per year, the years to double the price level can be calculated as follows:

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Step 2

Answer:

Thus, it takes 4 years to double the price level.

Step 3

b.)

Years to double:

If the inflation rate is 35 percent per year, the years to double ...

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