The 1970s were years of high inflation in Canada. By the 1990s, inflation rates were reduced to and held at lower levels. Follow the instructions in the NET @ssets box in Section 3.6 to find the Bank of Canada's "Inflation Calculator."
a) Obtain the cumulative percent inflation for each of four decades: 1970 to 1980, 1980 to 1990, and 1990 to 2000, and 2000 to 2010.
b) How much money was needed in 1990 to have the same purchasing power as $100 in 1980?
c) How much money was needed in 1970 to have the same purchasing power as $100 in 1980?
d) How much money was needed in 2010 to have the same purchasing power as $100 in 1970?

Question

Quizplus · Accepted Answer

The Answer of The 1970s were years of high inflation in Canada. By the 1990s, inflation rates were reduced to and held at lower levels. Follow the instructions in the NET @ssets box in Section 3.6 to find the Bank of Canada's "Inflation Calculator."
a) Obtain the cumulative percent inflation for each of four decades: 1970 to 1980, 1980 to 1990, and 1990 to 2000, and 2000 to 2010.
b) How much money was needed in 1990 to have the same purchasing power as $100 in 1980?
c) How much money was needed in 1970 to have the same purchasing power as $100 in 1980?
d) How much money was needed in 2010 to have the same purchasing power as $100 in 1970?

The 1970s Were Years of High Inflation in Canada