An analyst gathered the following year-end price level data for an economy: 2014 2018 2019 191 207.3 213.8 a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Inflation rate % b. What is the average compounded inflation rate for 2014–2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
Problem 2IEE
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An analyst gathered the following year-end price level data for an economy:
2014
2018
2019
191
207.3
213.8
a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places.)
Inflation rate
%
b. What is the average compounded inflation rate for 2014-2019? (Do not round intermediate calculations. Enter your answer as a
percent rounded to 2 decimal places.)
Average rate
%
Transcribed Image Text:An analyst gathered the following year-end price level data for an economy: 2014 2018 2019 191 207.3 213.8 a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Inflation rate % b. What is the average compounded inflation rate for 2014-2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average rate %
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