Answer to Question 2:

The inflation rates of the major industrial countries have been similar during the period after 1960.

True or False?


The answer is false. It is true that the movements of the inflation rates of the countries we examined have tended to be somewhat similar, but the average inflation rates of the countries were quite different.

This can be seen from Figures 3, 4 and 5. Great Britain and Italy had higher average inflation rates than the United States and Canada, while Germany had a lower average inflation rate than Canada and the United States.

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