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If you earned $17,000 in 1969 and earned $55,000 in 1994, did your standard of living increase (is your dollar worth more)? CPI in 1969 = 36.7, CPI in 1994 = 148.2. Correcting interest rates for inflation is important too: Nominal Interest Rate = Real Interest Rate = The Formula to correct the nominal interest rate for inflation: Let’s think ... ................
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