A price is a statement of average prices relative to a base year value of a. deflator; 100 b. index; 100 c. deflator; 1,000 d. index; 1,000

4. A perpetuity has end of month payments. The January payments are 1, the February payments are 2, the March payments are 3, the April payments are 4, the May payments are 5, the June payments are 6, the July payments are 7, the August payments are 8, the September payments are 9, the October payments are 10, the November payments are 11 and the December payments are 12. The nominal rate of interest is 1.2% convertible monthly. Calculate the present value for the perpetuity.

The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 190 gallons of gas, 65 pizzas, 50 6-packs, and 4 textbooks. Basket of College-Related Goods Basket of Goods Gasoline (per gallon) Pizza (per pizza) Beer (per 6-pack)> Textbook (per book) Price Base Year (dollars) $ 1.50 3.90 4.00 96.00 Price Last Year (dollars) $ 1.90 7.75 6.76 225.00 Instructions: Round your answers to two decimal places. a. Using the values above, what is the rate of inflation between the base year and last year? % b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $105 per textbook. What is the rate of inflation between the base year and last year now? %

In an economy the nominal interest rate is 6% and the inflation is 4%. Calculate real interest rate.

6) The value of 100 South Korean Won (KRW) against the Japanese Yen (JPY) rose from9.7730 in May 2014 to 11.1710 on May 1, 2015. What was the percentage change inits value?

Firm A has a domestic Salary of $12000 million, exports is $3500 million and purchase are $5000 million Calculate the value added by firm A

The nominal interest rate is equal to the real interest rate plus

Explain how high inflation in a booming real estate market could benefit an engineer who sells a home 5 years after she buys it.