2. Sam bought a saving bond that will pay $500 in 10 years. If the current interest rate is 4%, what is the present value of the bond?
[The following problems will be covered later...]
3. A market basket of goods and services cost $5,300,755 in 1995 (base year). The same goods and services cost $6,793,850 in 2000. Calculate the CPI for 1995 and the CPI for 2000.
4. What would increasing aggregate demand do to the price level and to National Income?
5. A house cost $65,000 in 1970 and $150,000 in 1990. If the CPI was 38.8 in 1970 and the CPI for 1990 was 130.7, what can you say about the real price of this house?
6. If your student loan has an interest rate of 3% and the inflation rate is 7%, what is the real interest rate on this loan?
7. The BLS surveyed 1000 people and found 650 had jobs, 40 were jobless and looking for work, and 310 were not working and were not looking for work. Calculate the unemployment rate.
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