Question: with detail and complete solution and answer to question Problem 3 (25 points) Let pm represent the consumer price index. If the rate of ination

with detail and complete solution and answer to question

Problem 3 (25 points) Let pm represent the consumer price index. If the rate of ination of the price index is constant at 5% (i.e., E = 5%), and the price index has a base value of 100 at time t = 0, solve for the expression showing the consumer price index as a function of time. Sketch the time path of 390.")

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