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Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
Edition 12ISBN: 978-1259070969Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
Edition 12ISBN: 978-1259070969 Exercise 8
Suppose that you have $250 to invest:
a. You decide to store the $250 in cash under your mattress. If inflation is 3 percent, what will the real value of that cash be after one year under the mattress
b. If the nominal interest rate for a typical savings account is 1 percent, how much value did you lose by not depositing the money at the bank
a. You decide to store the $250 in cash under your mattress. If inflation is 3 percent, what will the real value of that cash be after one year under the mattress
b. If the nominal interest rate for a typical savings account is 1 percent, how much value did you lose by not depositing the money at the bank
Explanation
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a)
Inflation refers to a sustained rise ...
Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz
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