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3. Suppose Reuben earned a salary of $50,000 in 2015 and $55,000 in 2016. (10 points total) a) The consumer price index was 1

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inflation Rate ГcPT -CPI (2016) (2015) 100 (2015) (132 -1201100 = 101 120 place in Halion 10:1 by Nominal income increased 106 Herr Nominal interest Rate - 3% in Halion Rate = 10.4 Nominal Real in ferent f inflation Rate = > 3.1 Real interes f 10-11

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