Sara has $200 in currency and $2,000 in a bank account on which the bank pays no

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Sara has $200 in currency and $2,000 in a bank account on which the bank pays no interest. The inflation rate is 2 percent a year. Calculate the amount of inflation tax that Sara pays in a year.

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 07:38 AM

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Sara has $200 in currency and $2,000 in a bank account on which the bank pays no

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Sara has 2200 of money With inflation ...View the full answer

Foundations of Macroeconomics

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