Table 2 shows the CPI and nominal interest rate of Singapore from 1990 to 2000. For each year beginning with 1991, calculate the rate of inflation and the real interest rate. Year CPI (Urban) | Nominal interest rate (%) Rate of Inflation (%) | Real interest rate (%) 1990 222 9.80 1991 233.3 7.83 1992 253.4 7.56 1993 294.2 9.54 1994 1995 367.8 429.6 10.98 10.98 9.07 1996 467.4 1997 481.9 7.02 1998 479.0 4.99 1999 472.8 2.89 2000 476.6 2.25 Explain what happened to inflation rate over the 1990s.
Table 2 shows the CPI and nominal interest rate of Singapore from 1990 to 2000. For each year beginning with 1991, calculate the rate of inflation and the real interest rate. Year CPI (Urban) | Nominal interest rate (%) Rate of Inflation (%) | Real interest rate (%) 1990 222 9.80 1991 233.3 7.83 1992 253.4 7.56 1993 294.2 9.54 1994 1995 367.8 429.6 10.98 10.98 9.07 1996 467.4 1997 481.9 7.02 1998 479.0 4.99 1999 472.8 2.89 2000 476.6 2.25 Explain what happened to inflation rate over the 1990s.
Chapter13: Inflation
Section: Chapter Questions
Problem 17SQ
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning