It can be an interesting exercise to compare the purchasing power of the dollar over different periods

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It can be an interesting exercise to compare the purchasing power of the dollar over different periods in history. Go to www.bankofcanada.ca/rates and scroll down to the link to the inflation calculator. Use this calculator to compute the following:

a. If a new house cost $10 000 in 1950, what would it have cost in 2012?

b. From (a), what is the percent change in the price of the house from 1950 to 2012?

c. What is the average annual rate of inflation?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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Question Posted: Feb 18, 2020 12:05 PM

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It can be an interesting exercise to compare the purchasing power of the dollar over different periods

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a Cost of House in 1950 is 10000 CPI in 1950 123 Computation of Cost of that ...View the full answer

The Economics of Money Banking and Financial Markets

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