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Suppose the Happy land Bureau of Statistics indicated that the Consumer Price Index (CPI) increased 102.2 in 2017 to 105.5 in 2018.Use this information to

Suppose the Happy land Bureau of Statistics indicated that the Consumer Price Index (CPI) increased 102.2 in 2017 to 105.5 in 2018.Use this information to answer the following questions:

(i) Calculate Happy land's inflation rate in 2018.

(ii) Suppose a firm borrowed money from a bank, examine the effect of inflation to the parties (firm and bank).

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