Assume "this year" is the base year used in calculating the CPI. Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the eal value of $2,000 received one year from now? (That is, what amount of money now gives you the same urchasing power as $2,000 in one year.) Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1) lecimal.
Assume "this year" is the base year used in calculating the CPI. Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the eal value of $2,000 received one year from now? (That is, what amount of money now gives you the same urchasing power as $2,000 in one year.) Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1) lecimal.
Chapter13: Inflation
Section: Chapter Questions
Problem 2SQP
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![Assume "this year" is the base year used in calculating the CPI.
Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the
real value of $2,000 received one year from now? (That is, what amount of money now gives you the same
purchasing power as $2,000 in one year.)
Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1)
decimal.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec96c92b-6f3d-4438-ab12-92749402f946%2Ff7e3ceee-ec7a-4e9b-8189-b19dbeb4c94f%2F3qxzer9_processed.png&w=3840&q=75)
Transcribed Image Text:Assume "this year" is the base year used in calculating the CPI.
Over the next year, the inflation rate will be 9.3%, while the nominal interest rate is 1.2% per year. What is the
real value of $2,000 received one year from now? (That is, what amount of money now gives you the same
purchasing power as $2,000 in one year.)
Do not write the dollar ($) sign, and use a minus (-) in front of a decrease. Round your answer to one (1)
decimal.
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