If the Rate of Inflation Is 12 Percent Per Year

question 8

Multiple Choice

If the rate of inflation is 12 percent per year, the price level will double in about

• A)4.1 years.
• B)5.8 years.
• C)10.2 years.
• D)12.4 years.

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Definitions:

Fixed Amount

A specific sum of money that does not change or vary under specified conditions.

Gratuitous

Provided without requiring anything in return; given freely or without charge.

Service

The provision of assistance or professional work performed for another person or organization.

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.