Buying Power The inflation rate tells us the percentage increase in prices. As inflation increases, the buying power of a dollar decreases. The percentage decrease in buying power D is related to inflation, I, expresses as a percentage, by the formula
a. Make at table of values that shows the percentage decrease in buying power for inflation rates in whole numbers from 1% through 10%.
b. What is the lowest (whole number) inflation rate that results in at least a 5% reduction in buying power?
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