2. The following table shows the nominal interest rate and the annual inflation rate (the GDP deflator) for Japan in the period 1996-2015: 1996-2000 2001-2005 2006-2010 2011-2015 Interest rate 1.5% 1.4 % 1.3% 1.2% Inflation -1.9% -0.9 % -0.5% 1.6% Japan's nominal interest rate and annual inflation from 1996 to 2015. Source: World Bank. Based on this information, which of the following statements is correct? (There may be more than one correct answer). A. The real interest rate in 1996-2000 was -0.4%. B. Japan's real interest rate steadily increased during this period. C. Japan's real interest rate changed from positive to negative during the period. D. The real interest rate fell faster than the nominal interest rate.

The following table shows the average nominal interest rates on six-month Treasury bills between 1997 and 2001, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 1997 to 2001. (All rates are rounded to the nearest tenth of a percent.) Nominal Interest Rate Inflation Fte Year (Percent) (Percent) 1997 5,2 2.3 1998 4.8 1.5 1999 4.8 2.2 2000 5.9 3.4 2001 3.4 2.8 Source: "FRED Economic Data," Federal Reserve Bank of St. Louis, last modified September 23, 2019, accessed September 24, 2019, https://fred.stlouisfed.org. On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 1997 to 2001. Next, use the green points (triangle symbol) to plot the real interest rates for those years.

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Quantity Quantity Item (2018) Price (2018) (2019) Price (2019) Magazines 400 $5.00 450 $4.50 Movie tickets 50 $6.00 200 $8.00 Pizzas 100 $10.00 120 $10.50 The data in the table above shows the consumption by families in an economy. The year 2018 is the reference base period. Based on the table above, between 2018 and 2019, the inflation rate in this country was 2.5 percent. 98.5 percent. -1.5 percent. 105.1 percent. -2.5 percent.

A consumer expenditure survey reports the following information on consumer spending:     2020   2021     Price Quantity Price Quantity Product (1) $10 7 $10 7 Product (2) $6 10 $8 12 Product (3) $12 5 $14 10   a) Using 2020 as the base year, by how much does a "cost of products" index increase between 2020 and 2021? b) Calculate the inflation rate between 2020 and 2021, using the CPI you calculated in (a)

The seasonally adjusted data below depict the performance of the economy of the United States in five quarters of 1974-1975. Annual Percent Change Nominal GDP Annual Percent Change Real GDP Year/Quarter 1974/Q1 4.1 -3.4 1974/02 10.8 1.0 1974/03 8.1 -3.7 1974/04 10.6 -1.5 1975/01 4.2 -4.8 The inflation rate in the United States was lowest in which of the following quarters? Select one: OA 1974/Q1. O B. 1974/Q2. OC. 1974/Q3. OD. 1974/Q4. OE 1975/Q1.

The following table shows a person's nominal and real wages for three years, as well as the price level (price index) for each year, using the first year as the base year. Fill in the blanks in the table, and then calculate the annual Inflation rate for each year (not including the base year). Instructions: Round your answers to 2 decimal places. Year Nominal Wage ($) Real Wage ($) Price Level Inflation Rate (%) 6.00 3.75 12.00 200.00 3. 5.00 280 00

Problem 3: Again, consider the country of Opalia that produces two goods: footballs and basketballs. Below is a table showing prices and quantities of common consumer purchases for the past three years: Price of Footballs Price of Basketballs Qd Footballs Qd Basketballs Year Year 1 10 12 33 4 Year 2 12 4 15 Year 3 18 14 a) Compute the CPI index (using year 1 as the base). b) Compute the inflation rate. c) Compare the answer to part b) and the answer you found for problem 1, part d)? What is the origin of the difference?

Inflation and interest rates a) Define/explain the consumer price index. b) Suppose that the nominal interest rate is 6.5% per year and you borrow $200. How much money will you have to repay in a year? c) Suppose that the nominal interest rate is again 6.5% and inflation is 1%. What is the real interest rate? d) Now suppose that the nominal interest rate is 1% and the inflation rate is 1.5%. What is the real interest rate? Would you like to be a lender or a borrower in this case? Why? Please explain/show how to do the calculations

This table indicates the historical level of the Consumer Price Index (CPI) for the United States for 1921, 1922, and 1923. Complete the table by (1) selecting the inflation rates for 1922 and 1923, and (2) indicating for each year whether there has been inflation, deflation, or hyperinflation. Year CPI Inflation Rate Change in Price Level 1921 17.9 — — 1922 16.8           1923 17.1             What rates of inflation for 1924 would be consistent with disinflation between 1923 and 1924? Check all that apply. 1.7%   11.8%   51.8%   1.8%     What rates of inflation for 1924 would be consistent with hyperinflation? Check all that apply. 15.0%   -1.8%   100.0%   120.0%