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.

Suppose you borrow $1,000 of principal that must be repaid t the end of two years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent, Hint: Future value = Present value x (1 + Growth in prices), where t is the number of years evaluated. Real value of loan repayment Amount of loan x (1 + Real interest rate) Instructions: Round your responses to the nearest whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real rate of interest on the loan? % b. What is the real value of the principal repayment? c. Who loses, the debtor or the creditor? Debtor O Creditor

Goods costing $27.10 at the beginning of the year 1940 cost $176.52 at the beginning of the year 1979. Find the average annual inflation rate over this time period. Express your answer the nearest thousandth of a percent.

What is the value of inflation when real interest rate is 6% and the nominal interest rate is also 6%

Quantity Quantity Item (2018) Price (2018) (2019) Price (2019) Magazines 400 $5.00 450 $4.50 Movie tickets 50 $6.00 200 $8.00 Pizzas 100 $10.00 120 $10.50 The data in the table above shows the consumption by families in an economy. The year 2018 is the reference base period. Based on the table above, between 2018 and 2019, the inflation rate in this country was 2.5 percent. 98.5 percent. -1.5 percent. 105.1 percent. -2.5 percent.

How might your personal inflation rate differ from the average inflation rate as measured by the Consumer Price Index?

a nation has had higher inflation recently. Last year, a basket of goods cost 360 but this year that same basked cost 396. suppose the nation's institutions succeeded in getting inflation down 2%. what would the basket of goods cost next year? (the answer should be 367.2, but I dont know how to get there)

Assume that a market basket necessary for consumption by a typical household in the economy consists of 300 sandwiches and 3 iPads. In year 2017 the price for one sandwich was $4, and the price of one iPad was $150. In year 2018, the price for one sandwich was $5, and the price of one iPad was $200. Assume that for our analysis we consider year 2017 as the base year. What is the rate of inflation from year 2017 to year 2018? a) 127.27% b) 27.27% c) 20% d) 75%

The nominal interest rate is 3% in the economy. Shawn is deciding to give loan to his friend at this rate.  The prevailing inflation rate is 2.5% Should Shawn give loan to his friend or not?

The nominal interest rate is 10​%. The inflation rate is 2​%.   The real interest rate is equal to