Examine the effects of inflation in attention to food and accommodation expenses.

Suppose you have $100 saved in the bank at an annual saving rate of 5 percent today. Also, the inflation rate is expected to be 7 percent annually over the next few years. What kind of confusion related to inflation would this create? Group of answer choices Blurred price signals Difficulties in long-term planning Unintended redistributions of purchasing power Substitution Bias

The idea that a regular annual inflation rate of 35 per cent requires CPP adjustments, but a regular annual inflation rate of 25 per cent does not, is quite absurd. Discuss.

if inflation is running at 8% and you want to negotiate a 2% raise in your salary, how large a raise should you ask for?      2%     6%     8%     10%

Your salary is currently $95,000.  The CPI last year was 220 and the CPI today is 235.  What should your new salary equal once it is adjusted for inflation?   Question 10 options:   a)  $101,477   b)  $98,921   c)  $96,000   d)  $99, 557

Calculate the inflation rate from 2016 to 2017 if the index number in 2016 was 125 and increased to 128 in 2017.

Use the information in the table to calculate the inflation rate. The base year is 1989. Market basket Frozen peas Wool slacks Cellular car phone 1989 Prices 1990 Quantity 0.60 26 1990 Prices 0.80 1991 Quantity 1991 Prices 29 0.70 20.00 16 25.00 25 35.00 な 325.00 2 300.00 16 450.00 What is the annual inflation rate for 1991? Enter your answer as a percent rounded to two places after the decimal. 1991 annual inflation rate:

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Now you see what the BLS economist do, except with a more complex basket of goods. Now try to construct an index and determine the inflation rate on your own. The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? (5 points) Items Qty. 2001 2002 2003 2004     Price Amount Spent Price Amount Spent Price Amount Spent Price Amount Spent Apples 10 $0.50   $0.75   $0.85   $0.88   Bananas 12 $0.20   $0.25   $0.25   $0.29   Grapes 2 $0.65   $0.70   $0.90   $0.95   Raspberries 1 $2.00   1.9   2.05   2.13 $2.13 Total                               Construct the price index for a “fruit basket” in each year using 2003 as the base year. (5 points)                   Compute the inflation rate…

By adjusting the interest rate and changing the quarterly deposits required, can we adjust annual inflation?