Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

A country had an annual inflation rate of 4% for three consecutive years. Which statement is correct for the 3-year period?

  • AThe price level rose by 12%.
  • BThe price level rose by more than 12%.
  • CThe real value of money rose by 12%.
  • DThe real value of money rose by more than 12%.

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