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Many observers have noted the significant increase in federal government spending in the United States in recent years. In 2010 and 2014, federal expenditures were $3.1 trillion and $3.7 trillion respectively.

Using year 2000 as a base year with price deflators of 1.205 and 1.275 in 2010 and 2014, respectively, calculate

1) the non-price adjusted change (nominal percentage change) in federal expenditures between 2010 and 2014,

2) the actual change in expenditures by the federal government (i.e., the real percentage change in federal expenditures) between 2010 and 2014 and

3) the amount of non-price adjusted change in federal expenditures due to inflation between 2010 and 2014?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92742412

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