How long would it take for the price level to double if inflation persisted at the following percentages? Instructions: Enter your answers as a whole number. a. 2 percent per year:[ b. 5 percent per year: c. 10 percent per year: years years years
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- A fixed-rate mortgage has the same interest rate over the life of the loan, whether the mortgage is for 15 or 30 years. By contrast, an adjustable-rate mortgage changes with market interest rates over the life of the mortgage. If inflation falls unexpectedly by 3, what would likely happen to a homeowner with an adjustable-rate mortgage?Inflation rates, like most statistics, are imperfect measures. Can you identify some ways that the inflation rate for fruit does not perfectly capture the rising price of fruit?Determine the economic loss or gain in the present worth caused by inflation?
- If inflation is increasing and you expect it to continue to the future then you will want to Spend your money slower and sooner Spend your money slower and later O Spend your money faster and later Spend your money faster and soonerHow has the inflation rise from Ukrainian war impacted the Europe? What are the areas that have been impacted? How are governments dealing with spike in inflation and problems caused by it?How does money of stable value influence the volume oftrade? When the inflation rate is volatile, how is the volumeof trade affected? How will this influence the income levelsof people?
- Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. In Year 1 the CPI was 100; 20 years later, it was 229. What was the annual rate of inflation? Round your answer to the nearest whole number. ___________% Nancy and Pam both currently earn $90,000. If the annual rate of inflation is 3 percent, how much must each earn after twelve years to maintain their purchasing power? Round your answer to the nearest dollar.$ ___________ Your parents bought a home for $40,000 in Year 1 and sold it in Year 21 for $220,000. What was the annual rate of price increase over the 20 years? Round your answer to the nearest whole number._____________ %Suppose Julie's salary went from $45,000 to 13. $175,000 in 12 years. a. Assuming she got the same percentage raise each of those twelve years, show how to calculate that rate (r%). b. Assuming that inflation was about 3% per year for those twelve years, by what percent did Julie's "purchasing power" increase? Explain what you think "purchasing power" means.From the data in the table below, what was the rate of inflation for the year ended December 2009? Select one: a. -0.2 percent b. 2.0 percent c. 2.1 percent d. 4.7 percent
- To determineThe impact of increased production without increased inflation.1. Calculate the inflation rate. 2. Re-do parts b)-d), but use year 2 as the base year. How do your answers differ?If inflation rises unexpectedly by 5%, indicate foreach of the following whether the economic actor ishelped, hurt, or unaffected:a. A union member with a COLA wage contractb. Someone with a large stash of cash in a safedeposit boxc. A bank lending money at a fixed rate of interestd. A person who is not due to receive a pay raise foranother 11 months