Find a country that has experienced more than two years of reported negative inflation in the last 10 years, can you suggest why this might have happened?
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Find a country that has experienced more than two years of reported negative inflation in the last 10 years, can you suggest why this might have happened?
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- 1. Which of the following regarding inflation is true? (a) If CPI changes from 100 to 105 in a year and then changes from 105 to 100 in the following year, then the initial rate of price increase is greater than the following rate of price decrease. (b) If CPI doubles in one year and then remains at that high level for five years, it means that the country suffers high inflation for five years. (c) If CPI is cut by half in one year, it means that the deflation rate of that year is 0.5%. ( d) Increasing CPI means that money is getting more and more valuable. (e) None of the above.1, Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.47% 8.53% 2 8.94 12.16 3 6.05 6.76 4 5.97 5.04 5 5.63 6.52 6 8.54 8.84 7 10.74 13.11 8 13.00 12.34 a, Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. b, Calculate the standard deviation of Treasury bill returns and inflation over this time period. c, Calculate the real return for each year. d, What is the average real return for Treasury bills?Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 10.45% 12.55% 2 11.36 16.00 3 9.06 10.29 4 8.34 7.97 5 8.88 10.29 6 11.23 12.77 7 14.11 16.98 8 15.97 16.90 a. Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation % b. Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation %…
- Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.47 % 8.53 % 2 8.94 12.16 3 6.05 6.76 4 5.97 5.04 5 5.63 6.52 6 8.54 8.84 7 10.74 13.11 8 13.00 12.34 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills % Average annual inflation rate % Calculate the standard deviation of Treasury bill returns and inflation over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation of Treasury bills % Standard deviation of inflation % Calculate the real return for each year. (A negative answer should be indicated by a minus sign. Leave no cells…Hyperinflation is indicated by all of the following, except: a. The general population prefers to keep its wealthy in nonmonetary assets. b. Interest rates, wages and prices are linked to a price index. c. The cumulative inflation rate over three years is approaching or exceeds 100%. d. All of the choices indicate hyperinflation.You are pleased to see that you have been given a 4.55% raise this year. However, you read on the Wall Street Journal Web site that inflation over the past year has been 2.37%. How much better off are you in terms of real purchasing power? (Note: Be careful not to round any intermediate steps less than six decimal places.)
- Suppose that the US price index is 100.0 in 1985 and 216.4 in 2015 (30 years). What is the average annual rate of inflation from 1985 and 2015 in the US? 2.61% 116.4% 16.4% 1.64% None of the aboveA small country is experiencing hyperinflation of 56% per month. A) By what percent have prices climbed after 5 months? B) If an item currently costs $14, how much will it cost after 1 year of such inflation? Text so i can copy itYou are pleased to see that you have been given a 6.28% raise this year. However, you read on the Wall Street Journal Web site that inflation over the past year has been2.93%. How much better off are you in terms of real purchasing power? (Note: Be careful not to round any intermediate steps less than six decimal places.) Your real purchasing power is _____%. (Round to two decimal places.)
- Some of the websites show graphs indicating how one currency has done relative to another currency. a. Over the past year, how has the pound performed against the dollar? Does the dollar buy more or less pounds today than it did 1 year ago? b. Over the past year, how has the dollar performed against the yen? Does the dollar buy more or less yen today than it did 1 year ago?Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). The following problem is related to price increases: 1. Your parents bought a home for $50,000 in 1982 and sold it in 2012 for $250,000. What was the annual rate of price increase over the 30 years?Assume that between 2005 and 2015 the price level doubled. What is the approximate average annual rate of inflation over this ten-year period? a. 7% b. 10% c. 5% d. 2% e. 1%
