Which most accurately characterizes the method used to calculate inflation? Bureaucrats evaluate changes in the price of a nation's currency in terms of other prominent world currencies. Economists measure change in the prices of three goods (gasoline, gold, and wheat) thought to be important determinants of the health of the economy. Analysts measure the cost of a bundle of goods representative of overall spending at two points in time and compare the difference in cost. Government workers poll households to find out how much change there is in the prices that they are paying. Researchers observe the interest rate at two points in time and infer the rate of inflation from the difference.

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not