11.   Rational expectations catch up with the actual inflation rate.

12.   Similarly, a lower inflation rate could be achieved at the cost of an increase in the unemployment percentage.

13.   The inflation rate was still in single figures.

14.   The real rate of interest is simply the difference between the Market rate of interest and the inflation rate.

15.   The rise in the inflation rate, in turn, raises the nominal interest rate.

16.   This aided the operation of the fixed exchange rate system and helped to maintain a low inflation rate in the international economy.

17.   Inflation rates have reached a plateau.

18.   The commonest way of doing this is to take the latest available RPI and to assume a constant inflation rate thereafter.

19.   The best way is to calculate the break-even inflation rate.

20.   When the inflation rate is expected to remain constant over time, the normal position of the yield curve is to be upward-sloping.