If the Consumer Price Index rises from 140 in a year to 150 in the following year, the rate of inflation in that year is: 7.14% 10% 6.67% 1.07%
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- Question 11 of 25, Step 1 of 1 T A basket of goods and services is used to calculate the consumer price index (CPI) in Country A. The weight of food and beverages is 10% of the whole basket. The average household's budget on food and beverages was $7,500 in 2010 (base year) and increased by $500 in 2015. Assuming the increase in the rate of spending on food and beverages matched the inflation rate, calculate the inflation rate between 2010 and 2015. Round your answer to two decimal places if necessary.Given the deflator in 2015 is 110.4. What is the inflation rate between 2015 and 2016? Using the calculation for the inflation rate, is the economy experiencing inflation, disinflation, or deflationOver the last 10 years, the average rate of inflation has been 1.61%. what is the purchasing power of a dollar today in terms of what a dollar could purchase in 2008?
- Suppose Frances is an avid reader and buys only mystery novels. Frances deposits $2,000 in a bank account that pays an annual nominal interest rate of 15%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a mystery novel is priced at $20.00. Initially, the purchasing power of Frances's $2,000 deposit is mystery novels. For each of the annual inflation rates given in the following table, first determine the new price of a mystery novel, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Frances's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest mystery novel. For example, if you find that the deposit will cover 20.7 mystery novels, you would round the purchasing power down to 20 mystery novels under the assumption that…The steps involved in calculating the consumer price index, in order, are as follows: * Choose a base year, fix the basket, compute the inflation rate, compute the basket's cost, and compute the index. Choose a base year, find the prices, fix the basket, compute the basket's cost, and compute the index. Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index. Fix the basket, find the prices, compute the inflation rate, choose a base year and compute the index.What would be the inflation rate in Alaska if Nominal interest rate is 2% and real interest rate is 0.6%
- If the Consumer Price Index was 155 in one year and 165 in the next year, then the rate of inflation from one year to the next was approximately: 6.5% 10% 6.1% -6.5%Suppose Devon is a fashionista and buys only denim jackets. Devon deposits $4,000 into a savings account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed, and so it will not change over time. On the day she makes her deposit, suppose that a denim jacket has a price of $10.00. Initially, Devon's $4,000 deposit has a purchasing power of 400 denim jackets. For each of the annual inflation rates given in the following table, first determine the new price of a denim jacket, assuming it rises at the rate of inflation. Then enter the corresponding purchasing power of Devon's deposit after one year in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest denim jacket. For example, if you find that the deposit will cover 20.7 denim jackets, you would round the purchasing power down to 20 denim jackets under the…You purchase a certificate of deposit that pays an advertised rate of 2.25% interest per year. What is your nominal rate of return if the actual inflation rate is 1.65%? ○ -0.6% ○ 2.25% ○ 1.65% ○ 0.6%
- If the nominal interest rate on a loan was 10 percent and the real interest rate was 8 percent, then the inflation rate during that time must have been: 9% 2% 1.25% 18%Suppose Ginny is an avid reader and buys only comic books. Ginny deposits $3.000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed-that is, it won't change over time. At the time of her deposit, a comic book is priced at $15.00. Initially, the purchasing power of Ginny's $3,000 deposit is comic books. For each of the annual inflation rates given in the following table, first determine the new price of a comic book, assuming it rises at the rate of inflation. Then enter the corresponding ourchasing power of Cinny's deposit ater one vear in the first row of the table for each inflation rate. Finally, enter the value for the real interest rate at each of the given inflation rates. Hint: Round your answers in the first row down to the nearest comic book. For example, if you find that the deposit will cover 20.7 comic books, yor would round the purchasing power down to 20 comic books under the assumption that Ginny will not buy…The Personal Consumption Expenditure (PCE) Price Index was 124.74 in November 2022, 124.62 in October 2022, 118.20 in November 2021, and 117.48 in October 2021. What is the year-over-year inflation rate in November 2022 calculated using PCE? (Enter your response rounded to two decimal places. That is, 7.877% should be entered as 7.88.)