Week 1

Principles of Macroeconomics (with Xtra!)

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Effects-of-Inflation Effect of Inflation 1) Bank of Canada - Inflation Calculator ( http://www.bankofcanada.ca/en/ inflation_calc.htm ) Uses the CPI to calculate the amount of inflation since 1914. For example, A basket of goods and services that cost: $100.00 in 1914 would cost: $1,668.06 in 2002 (Total) Per cent change: 1568.06% Number of years: 88 Average Annual (compounded) Rate of Inflation/Decline in the Value of Money:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3.25% CPI for the first year: (Sept 1914) 7.2 CPI for the second year: (Sept 2002) 120.1 2) Bank of Canada - Investment Calculator ( http://www.bankofcanada.ca/en/ investment.htm ) Shows the effect of inflation on savings and investments. file:///C|/Documents%20and%20Settings/Linda%20Grauer/My%. ..ronto/ECM%20B06/Handouts/Week1/Effects-of-Inflation.html [2/6/2008 12:29:12 PM]...
View Full Document

This document was uploaded on 02/07/2008.

Ask a homework question - tutors are online