What is the inflation rate in 2019? Has it increased or decreased since 2018 and by how much?  If the nominal interest rate in 2019 is 7%, what would be the change in purchasing power of $1,000 deposited in January 219 by the end of the year?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 28CTQ: Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder...
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  1. What is the inflation rate in 2019? Has it increased or decreased since 2018 and by how much?  If the nominal interest rate in 2019 is 7%, what would be the change in purchasing power of $1,000 deposited in January 219 by the end of the year? 
Afples
Gorapes.
Pし)
Year
110
30
500
2017
21
2018
24
148
30.5
sio A
31
2019
24
150
Nominal GOD in
21x 11o
30 x SDO
$ 17,31 0
2017
24 x 145
* 18,730
2018
30.5 S00 2
2019 t
24x150
+
31x520
19,7 2o
Real GOD 'in Cbare 2017)
year
2017
17,310
%3D
21
2०1 ६ =
21 »
キ 18,045
145
Transcribed Image Text:Afples Gorapes. Pし) Year 110 30 500 2017 21 2018 24 148 30.5 sio A 31 2019 24 150 Nominal GOD in 21x 11o 30 x SDO $ 17,31 0 2017 24 x 145 * 18,730 2018 30.5 S00 2 2019 t 24x150 + 31x520 19,7 2o Real GOD 'in Cbare 2017) year 2017 17,310 %3D 21 2०1 ६ = 21 » キ 18,045 145
2019
820 2
$18,750
Nominal GDP
GDP
deftabor
» 100
Real GOO
for
12,310 )al00
2017
l00100/ l00
%3D
n,310
Jor
18, 730
2018 =
* 160
103.80
18,045)
19,20
yo 2019
xlou
1os.17
18,750
Transcribed Image Text:2019 820 2 $18,750 Nominal GDP GDP deftabor » 100 Real GOO for 12,310 )al00 2017 l00100/ l00 %3D n,310 Jor 18, 730 2018 = * 160 103.80 18,045) 19,20 yo 2019 xlou 1os.17 18,750
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