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- Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder than in many other countries?The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.5.0 4.0 3.0 2.0 1.0 1975 1985 1995 2005 Year In the above figure, which period(s) show deflation? O Only from 1995 to 2005. O Only from 1985 to 1995. O None of the above because there is no year with deflation in the above figure. O From both 1975 to 1985 and from 1995 to 2005. Inflation rate (percent per year)
- If the real discount rate is 7% and the inflation rate is 10%, Which of the follo ing interest rates ill be sed to find the present orth of a which of the following interest rates will be used to find the present worth of a series of cash flows that are in constant-worth dollars? a. 10.0% b. 17.7% c. 7.0% d. 10.7%.The “prime” interest rate is the rate that bankscharge their best customers. Based on the nominalinterest rates and inflation rates in Table 19.10, inwhich of the years would it have been best to be alender? Based on the nominal interest rates and inflationrates in Table 19.10, in which of the years given wouldit have been best to be a borrower?Supposethat on January 1 2009, the TL price of thedollar is 1.40 overtheyear, inflation rate in Turkey is 25 % and U.S. inflation rate is 10%. Iftheexchange rate is $1= 1.50 TL at theend of theyear, whichcurrencyappearto be overvalued.?Explain your answer.
- o Calculate the constant flows based on year zero of the following current data o What is the real rate of the flows if the market rate is 18% o In constant pesos, what is the value of the flows in 2015Please do fast ASAP fastSame table, what is inflation/deflation from 2019 to 2021 using the Deflator method? year Burkin Bag Burkin Price Nikes 2019 3 $ 100.00 Nikes Price 10 $ 125.00 2020 4 $ 200.00 11 $ 110.00 BASE YEAR 2021 2 $ 140.00 12 $ 135.00 2022 3 $ 125.00 10 $ 120.00 2023 4 $ 175.00 11 $ 150.00 O.1243 O.1373 O.1419 ○ .1528 ○ .1695 Question 6 using the same table, what is deflation/inflation from 2021 to 2022 using the deflator method? year Burkin Bag Burkin Price Nikes Nikes Price 2019 3 $ 100.00 10 $ 125.00 2020 4 $ 200.00 11 $ 110.00 BASE YEAR 2021 2 $ 140.00 12 $ 135.00 2022 3 $ 125.00 10 $ 120.00 2023 4 $ 175.00 11 $ 150.00 О -.0745 ○ -.0894 ○ -.0973 O -10.17 O-1102
- Table 6.2 Year CPI 150 154 152 4. 156 160 Refer to Table 6.2. If a worker earned $40,000 years ago when the CPI was 130, what is the minimum salary he must earn in year 4 to "more than keep up with inflation"? O $49,230.77 O $48,000.00 O $46.769.23 O $46.153.85Yor nother's amual salary backn 2000,the base year, was 180,000 dirhams. If in 2021, her annual salary, in real terms, is 45,000 dirhams, then DA The CPLm 2021 s 25 (or 025) C The CPin 2021 s 50 (or 05) Oc The CPis 2021 s 1000(fr 10.0) De The CPl a 2021 is 10 for 01)Suppose you lent money to a friend a few years ago at a nominal interest rate of 6%. At the time ot he loan, you expected the annual inflation rate to be 2%, but the actual annual inflation rate was 1.2%. When the loan originated, you expected to earn a real return of but due to unexpected disinflation, you earned an actual real return of A. 2%; 1.2% OB. 4.8%; 6% C. 6%; 4.8% D. 4%; 4.8%