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2 January, 15:36

The economy has an annual inflation rate of 3.5%. it will take approximately how many years for the price level to double?

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  1. 2 January, 16:06
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    To find the answer you will want to follow the rule of 70. The rule of 70 allows you to find the number of years it takes a variable to double.

    In this situation, you would divide 70 by 3.5% (variable) giving you 20 years.

    It would take approx. 20 years for the price level to double.
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