Use the data in Table 1 to express the continuously compounding annual rate of inflation from 1972 to 1975. Table 1. Personal Consumption Expenditures Price Index (PCEPI), 1970-1975. Year 1970 1971 1972 1973 1974 1975 PCEPI 20.9 21.8 22.5 23.8. 26.2 28.5 O [In(22.5) In(28.5)1/3 O [In(22.5)-In(28.5))/4 O [In(28.5)-In(22.5))/3 O [In(28.5)-In(22.5))/4

Use the data in Table 1 to express the continuously compounding annual rate of inflation from 1972 to 1975. Table 1. Personal Consumption Expenditures Price Index (PCEPI), 1970-1975. Year 1970 1971 1972 1973 1974 1975 PCEPI 20.9 21.8 22.5 23.8. 26.2 28.5 O [In(22.5) In(28.5)1/3 O [In(22.5)-In(28.5))/4 O [In(28.5)-In(22.5))/3 O [In(28.5)-In(22.5))/4

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 5SQ

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