Zach Du, Chapter 10, Question 6

I found the part when Wheelan encountered a farmer and showed the principal of inflation was especially appealing. "Somewhere outside of Des Moines, I began chatting with a corn, soybean, and cattle farmer. As he gave me a tour of his farm, he pointed to ahold tractor parked outside the barn. 'That tractor cost $7,500 new in1970,' he said. 'Now look at this,' he said angrily, pointing to a shiny new tractor right next to the old one. 'Cost me $40,000. Can you explain that?'" (230). Actually, the answer to his question is easy to explain: inflation. People often confused by simply looking at the two numbers, but not compare the real terms. Now, the farmer could afford this brand new tractor by doing less amount of work than before, which means the price did not go up, but instead it went down.