Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results. Item Food Clothes Aluminum Base year: 2008 Price/unit (2009) Tk. 5 Tk. 100 Tk. 200 Qty (2009) 100 5 2 Price/unit (2008) Tk. 20 Tk. 400 Tk. 800 Qty (2008) 400 20 8 Question a) If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. b) If the bank interest rate was 9% in 2009, what was the real interest rate in 2009?

Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results. Item Food Clothes Aluminum Base year: 2008 Price/unit (2009) Tk. 5 Tk. 100 Tk. 200 Qty (2009) 100 5 2 Price/unit (2008) Tk. 20 Tk. 400 Tk. 800 Qty (2008) 400 20 8 Question a) If your salary in 2008 and 2009 was same, comment on your standard of living in these two years. b) If the bank interest rate was 9% in 2009, what was the real interest rate in 2009?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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