When a group of people voluntarily band together to share some kind of benefit, we call this

Suppose that the price level was 100 in 2011, 110 in 2012, and 130 in 2013. Over these three years

A) deflation occurred at an accelerating rate. B) the inflation rate was positive but slowing. C) prices were stable. D) the inflation rate was positive and accelerating.

Assume that the current one-year rate is 5% and the two-year rate is 7%. Given this information, the one-year rate expected one year from now is

A) 5%. B) 6%. C) 7%. D) 9%. E) 12%.