HW#1 - Econ302 Homework Assignment 1 Spring 2009 Due...

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Econ302 Homework Assignment 1 Spring  2009 Due Thursday Feb 5 th   (Questions 1, 2, and 3 will be graded) Name: Section: 1. a.  The reward for the capture of Jesse James was $500.00 in 1881.  Suppose the CPI in 1881 was  0.25.  What is the real value of the reward in 1990 dollars if the CPI was 130.7 in 1990?   b.  The CPI in 1970 was 38.8 and in 1998 the CPI was 163.0.  If the real value of a 1970 gallon of  milk in terms of 1998 dollars is $0.70, what was the nominal price of milk in 1970?
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c.  The following is a list of prices for housing in five different countries along with their CPI.  For which country is the real cost of housing declining?  Use year 2 as the base year in your  answer. Country Year 1 2 Housing Costs CPI Housing Costs CPI Argentina 37 121 32 97 Egypt 42 98 45 89 Italy 61 157 78 177 Spain 53 143 57 169 United  States 25 100 33 103 2.  A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound.  Unlimited quantities are available for import into the United States at this price.   The U.S. 
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This note was uploaded on 03/24/2009 for the course ECON 302 taught by Professor Avrin-rad during the Spring '09 term at University of Illinois, Urbana Champaign.

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HW#1 - Econ302 Homework Assignment 1 Spring 2009 Due...

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