As Applied to the Price Level, the "Rule of 70

question 179

Multiple Choice

As applied to the price level, the "rule of 70" indicates that the number of years required for the price level to double can be found by

• A) dividing 70 into the annual rate of inflation.
• B) dividing the annual rate of inflation into 70.
• C) subtracting the annual change in nominal incomes from 70.
• D) multiplying the annual rate of inflation by 70.

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Definitions:

Complex Lipid

Any of a group of lipids that combine with other types of molecules, such as carbohydrates or proteins, forming structures essential for living organisms.

Simple Lipids

Lipids that consist of fatty acids esterified with glycerol, including fats and oils, which serve as energy storage molecules in living organisms.

Esterification

A chemical reaction that forms an ester through the reaction of a carboxylic acid and an alcohol.

Hydrolysis

A chemical reaction where water breaks down another compound, often resulting in the formation of two or more new compounds.