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2. Inflation and real interest rates (10 points total) a) Suppose that the consumer price index was 100 on January 1st, 2000

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pad Inflation = CPI 2-CP10 CPI. (a) Inflatich c 105.5-100 x100 100 55.5.1. (b) Inflation = 98-100 X 100 TOU -21. CS

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