Question 60Table 24-4Adam's expenditures on food for three consecutive years, along with other values, are presented in the following table.Expenditures on foodConsumer price index1$5,000175Year2$5,3001823$6,150XRefer to Table 24-4. If the nominal interest rate was 10 percent in Year 2, thenO a. Adam's Year 1 food expenditures in Year 3 dollars amount to $6,200.b. Adam's Year 1 food expenditures in Year 2 dollars amount to $5,800.O c. the real interest rate in Year 2 was 6 percent.O d. the real interest rate in Year 2 was 14 percent.

The consumer price index in year 1 was 175 The consumer price index in year 2 was 182…

Adam's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index 1 $5,000 175 Year 2 $5,300 182 3 $6,150 X

Adam's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index 1 $5,000 175 Year 2 $5,300 182 3 $6,150 X

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...

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