1974-04-01 =27.387

1975-04-01 =29.887

1. Calculate the rate of inflation from April 1974 (1974-04-01) to April 1975 (1975-04-01).
2. Suppose that you earned $25,000 per year back in April of 1975. Assuming that the current price index is 112, how much money would you have to make now to have the same purchasing power as $25,000 did back in April of 1975?
3. In April 1974, the one year interest rate 8.08%. Calculate the ex-post real rate of interest.
4. Given your answer in part c), is this an environment attractive to saving or spending? Explain.