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Suppose that the nominal interest rate in Japan is 2.3%. In addition, the inflation rate is equal to 6.7%.

Given this information, what is the real interest rate in Japan?

%

 

Hint






Suppose that the price of Oranges in 1966 is $0.1 and in 2010 it is $1.5. In addition, you also know that the CPI in 1966 is 200 and in 2010 it is 170.

Given this information, what is the real value of Oranges in 1966?

 

Hint




Suppose that the price of Apples in 1979 is $1.7 and in 2008 it is $1.8. In addition, you also know that the CPI in 1979 is 90 and in 2008 it is 140.

Given this information, what is the real value of Apples in 2008?

 

Hint




Suppose that the price of Apples in 1975 is $1.7 and in 1998 it is $2.7. In addition, you also know that the CPI in 1975 is 160 and in 1998 it is 240.

Given this information, what is the change in the real value of Apples between 1975 and 1998.

%

 

Hint


Suppose that a typical doctor earned 40000 in 1980. In addition, you know that in 1990 a typical doctor earns 82000. Finally, you also know that the CPI in 1980 is 250 and in 1990 is 230.

Given this information, doctor's 1980 salary in 1990 dollars is:

$

 

Hint


Suppose that a typical accountant earned 23000 in 1967. In addition, you know that in 2016 a typical accountant earns 70000. Finally, you also know that the CPI in 1967 is 240 and in 2016 is 230.

Given this information, accountant's 2016 salary in 1967 dollars is:

$

 

Hint




Suppose that a typical accountant earned 49000 in 1964. In addition, you know that in 1989 a typical accountant earns 86000. Finally, you also know that CPI in 1964 is 110 and in 1989 is 240.

Given this information, the salary of a typical accountant in 1989 relative to 1964 is:

 

Hint




The price index was 120 in one year and 240 in the next.

What is the inflation rate?

%

 

Hint