Chapter 2 - Lesson 2
Development of U.S. Banking

As you learned in your textbook, inflation is a collective rise in the supply of money, incomes, and prices. The web site operated by the Federal Reserve Bank of Minneapolis includes an inflation calculator that allows you to examine how the value of money can change depending on the rate of inflation. Visit the site to answer the following questions.

Suggested keywords: inflation calculator, Federal Reserve Bank of Minneapolis
Web site: http://minneapolisfed.org/

Your Name:	Today's Date:
Question 1: Suppose you bought $500 worth of goods in 2002. Use the calculator to determine what those same goods would have cost in 1930. (Hint: From the home page, click the ''Inflation calculator'' link.)
Question 2: Suppose you bought $500 worth of goods in 1930. Use the calculator to determine what those same goods would cost today.
Question 3: Since 1913, which year has had the single greatest inflation rate increase? The greatest decrease? (Hint: Click the ''Consumer Price Index and Inflation Rates, 1913 - '' link.)