Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent a year. after one year, would the money in the account buy more than it does today, exactly the same or less than today?

more than it does today
less than today
exactly the same

if interest rates rise, what will typically happen to bond prices? rise, fall, stay the same, or is there no relationship?

stay the same
fall
no relationship
rise

In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5