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the annual rate of inflation is 5%. this implies that? a)the cost of living would be $600 next year if were $500 this year b)the

the annual rate of inflation is 5%. this implies that?

a)the cost of living would be $600 next year if were $500 this year

b)the purchasing power of real dollar is decreasing at the rate of 5% a year

c)the purchasing power of a nominal dollar is decreasing at the rate of 5% a year

d) a and c above

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