Suppose that the South African inflation rate is predicted to increase from its current rate of 7.1% in the 1st quarter of 2023 to about 11.5% by the end of the 3rd quarter of 2023, which of the following is a possible economic effect? a) Speculative practices b) Encourages saving c) High benefits to creditors d) Reduces the costs of export industries and import-competing industries

Suppose that the South African inflation rate is predicted to increase from its current rate of 7.1% in the 1st quarter of 2023 to about 11.5% by the end of the 3rd quarter of 2023, which of the following is a possible economic effect? a) Speculative practices b) Encourages saving c) High benefits to creditors d) Reduces the costs of export industries and import-competing industries

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...

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The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.
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