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If the CPI was 120 last year and is 132 this year, what is this year's rate of inflation?
Instructions: Round your answer to two decimal places.
_____%
In contrast, suppose that the CPI was 120 last year and is 118 this year. What is this year's rate of inflation?
______%
This would be a good chance to point out one very important information. We associate monetary rule with lower or higher interest rates, but what most people do not realize is that the Fed is actually doing is changing money supply
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