Inflation and Interest Rates: Tutorial
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Mathematics, 19.11.2020 02:10, allieballey0727
Inflation and Interest Rates: Tutorial
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Consider a simple economy where the basket of goods used to calculate the CPI contains two items shampoo and soap.
The basket consists of 1 bottle of shampoo and 2 bars of soap. The prices are shown in the table.
Year Price of a Bottle of Shampoo Price of a Bar of Soap
Year
36 50
$1.25
Year
$5.00
$1.30
Type the correct answer in the box. Round your answers to two decimal places, if necessary.
The CPI for year 2 is
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