Price index cost of market basket today cost of, Econometrics

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Price index cost of market basket today cost of

Price index = (cost of market basket today / cost of marketbasket in base year) * 100
Nominal rate of interest = 7%
Expected inflation rate = 5%
Real rate of interest = 2%
What is the anticipated value of the price index next year when the current year is the base year for the price index used tocalculate inflation?

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Econometrics: Price index cost of market basket today cost of

Reference No:- TGS0569747

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Econometrics: Price index cost of market basket today cost of

Reference No:- TGS0569747

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