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The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
Edition 10ISBN: 978-0132763646The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
Edition 10ISBN: 978-0132763646 Exercise 18
It can be an interesting exercise to compare the purchasing power of the dollar over different periods in history. Go to www.bls.gov/cpi/ and scroll down to the link to the inflation calculator. Use this calculator to compute the following:
a. If a new home cost $125,000 in 2011, what would it have cost in 1950?
b. The average household income in 2011 was about $40,000. How much would this have been in 1945?
c. An average new car cost about $20,000 in 2011. What would this have cost in 1945?
d. Using the results you found in Exercises b and c, does a car consume more or less of average household income in 2011 than in 1945?
a. If a new home cost $125,000 in 2011, what would it have cost in 1950?
b. The average household income in 2011 was about $40,000. How much would this have been in 1945?
c. An average new car cost about $20,000 in 2011. What would this have cost in 1945?
d. Using the results you found in Exercises b and c, does a car consume more or less of average household income in 2011 than in 1945?
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The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin
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