Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 6PA

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