1. Inflation Part 2

2. How much stuff can you buy with the money you have?
INFLATION
Types of inflation
Purchasing power: the number of items you can buy with a unit of currency
(in our case USD)
How much stuff can you buy with the money you have?

3. Unexpected Inflation—
WHO DOES IT HELP?
Borrowers--- Paying back with dollars not worth as much
People that make fixed payments gain.
Types of inflation

4. Unexpected Inflation—
WHO DOES IT HURT?
People on a FIXED income.
Savers---Money you saved loses purchasing power.
Lenders/Creditors--- Money they loaned loses purchasing power.
Types of inflation

5. Complete the worksheet on CPI and inflation rates.
Time to Practice!!!
Types of inflation
Complete the worksheet on CPI and inflation rates.
This is where the CPI practice worksheet will be inserted.
Tape along the seam.

6. The next page you will need to insert the notes that I have printed for you.