2. Complete the following table. Assume the real interest rate remains constant at 3%. (CPI numbers are for the end of each year.) Year CPI 1 120 2 3 132 - Inflation Rate Nominal Wage XXXX XXXX 10% 5% $8.00 Real Wage Nominal Interest Rate XXXX XXXX $7.27 $10.00 13%

2. Complete the following table. Assume the real interest rate remains constant at 3%. (CPI numbers are for the end of each year.) Year CPI 1 120 2 3 132 - Inflation Rate Nominal Wage XXXX XXXX 10% 5% $8.00 Real Wage Nominal Interest Rate XXXX XXXX $7.27 $10.00 13%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. Complete the following table. Assume the real interest rate remains constant at 3%.
(CPI numbers are for the end of each year.)
Year CPI
1
120
2
3
132
Inflation Rate Nominal Wage Real Wage Nominal Interest Rate
XXXX
XXXX
XXXX
XXXX
10%
5%
$8.00
$7.27
$10.00
13%

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