If the Price Level Rose in Three Consecutive Years from 100

question 239

Multiple Choice

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

• A)increase.
• B)remain the same.
• C)decrease.
• D)equal 20%.

Recognize the effects of interest rates on business investment decisions.

Understand the concepts of the average propensity to consume (APC) and save (APS).

Describe the importance of the capacity utilization rate in economic analysis.

Clarify the role of government in investment in different economic systems.

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Definitions:

Pupa

A transitional stage of a developing insect, after larva and before adulthood, during which it undergoes transformation.

Cocoon

A protective casing spun by the larvae of many insects, inside which they undergo metamorphosis into their adult form.

Caterpillar

The larval stage of butterflies and moths, often recognized by its elongated body, multiple legs, and the ability to transform into a butterfly or moth.

Topic Sentence

The sentence that expresses the main idea of a paragraph, usually placed at the beginning.