Using the CPI measure of the price level, which is 100 in the base year of 2007, calculate the annual inflation rates for (a) 2013, when the index is 103.7. (b) 2014, when the index is 105.5. (c) 2015, when the index is 107.7
What will be an ideal response?
(a) Inflation in 2013 = (103.7 - 100 )/100 × 100% = 3.7%.
(b) Inflation in 2014 = (105.5 - 103.7 )/100 × 100% = 1.7%.
(c) Inflation in 2015 = (107.7 - 105.5 )/100 × 100% = 2.1%.
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The Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association were established by Congress in order to regulate banks that buy and sell mortgage-backed securities
Indicate whether the statement is true or false