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:

Disconfirming Instances

Instances or examples that provide evidence against a particular hypothesis or statement.

Generalization

A broader statement or principle derived from specific instances, making wider claims based on limited observations.

Generalization

A broad statement or concept derived from specific instances, often used to make predictions or assumptions about unobserved situations.

Plausible

Appearing likely or believable, though not necessarily true.