Suppose that in 2015 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2016 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

A) Estonia's rate of inflation is higher than Lithuania's.
B) Lithuania is a more expensive place to live than Estonia.
C) Estonia is a more expensive place to live than Lithuania.
D) Lithuania's rate of inflation is higher than Estonia's.


D

Economics

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If the nominal interest rate is 0.6 percent and the rate of inflation is 2.9 percent in a given year, then what is the corresponding real rate of return?

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