ZuoTi.Pro
Question

Econ Help Suppose the GDP deflator is 136 in 2012 and 157 in 2013, you know...

Econ Help

Suppose the GDP deflator is 136 in 2012 and 157 in 2013, you know that the real interest rate is 3%, what is the nominal interest rate?

Select one:

a. 18.4%

b. 12.4%

c. 15.4%

d. -12.4%

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Correct Answer:

A

Working note:

Inflation rate = (157/136) - 1 = 15.44%

Nominal interest rate = inflation rate + real interest rate

Nominal Interest rate = 15.44% + 3% = 18.44%

0 0
Add a comment
Know the answer?
Add Answer to:
Econ Help Suppose the GDP deflator is 136 in 2012 and 157 in 2013, you know...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012...

    GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012 231.2 95.43 1619 2013 234.72 97.11 16785 2014 236.27 98.94 17522 2015 237.83 100.00 18219 2016 242.7 01.09 1870 2017 247.91 103.02 19485 1. Calculate the annual inflation rate using the CPI. 2. Calculate the annual GDP growth rate using the GDP. 3. Explain how the inflation rate and the GDP growth have been moved. 4. Calculate the real GDP using GDP deflator by...

  • Suppose nominal GDP is estimated to be $5 trillion, and the GDP deflator is 150. Given...

    Suppose nominal GDP is estimated to be $5 trillion, and the GDP deflator is 150. Given these numbers what is real GDP? Select one: a. $2.75 trillion b. $ 4.0 trillion c. $3.33 trillion d. $7.5 trillion

  • 1. Suppose nominal GDP is S99,000 and the GDP deflator is 110. Real GDP is: A...

    1. Suppose nominal GDP is S99,000 and the GDP deflator is 110. Real GDP is: A $90,000 B $108,900 C $10,890,0 D $900 PRESS APPLY ON PAPER

  • Need help, please show work 1. Between 2012 and 2013 a country's nominal GDP rose from...

    Need help, please show work 1. Between 2012 and 2013 a country's nominal GDP rose from $16.30 billion to $16.789 billion. At the same time the country's price index rose from 142.00 to 144.84 and its population rose from 500,000 to 502,500 people. Based on this data: Nominal GDP increased by The inflation rate was RGDP per capita (measured in base year dollars) was $ % and the population grew by in 2012 an in 2013 Real GDP per capita...

  • 2010 Prices 2010 Quantity 2011 Prices 2011 Quantity 2012 Prices 2012 Quantity Apples $3 5 $3...

    2010 Prices 2010 Quantity 2011 Prices 2011 Quantity 2012 Prices 2012 Quantity Apples $3 5 $3 11 $3 8 Oranges $2 9 $9 3 $1 10 Nominal GDP Real GDP A.  Calculate the nominal and the real GDP in each year for the economy. 2010 is your base year. B.  If the real GDP was $150 in 2013 and $182 in 2014, what would the GDP growth rate would be? What would this mean? C.  If the nominal GDP was $250 in 2014...

  • Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population...

    Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when caloulating this rate. However, the smplified equation is both easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The table below lists...

  • Suppose that a nation's nominal GDP is $972 billion and the GDP deflator is 90. In...

    Suppose that a nation's nominal GDP is $972 billion and the GDP deflator is 90. In order to make this year's GDP comparable to the reference year GDP, this year's GDP must be: Select one: a. adjusted downward to $687 billion b. deflated to $896 billion c. inflated to $1080 billion d. deflated to $875 billion e. inflated to $896 billion

  • Need help, please show work 4. Between 2012 and 2013 a country's GDP rose from $16.30...

    Need help, please show work 4. Between 2012 and 2013 a country's GDP rose from $16.30 billion to $16.789 billion. At the same time the country's price index rose from 142.00 to 144.84 and its population rose from 500,000 to 502,500 people. Based on this data: Nominal GDP increased by The inflation rate was The population grew by % RGDP per capita (measured in base year dollars) was $ in 2012 and $ in 2013 % Real GDP per capita...

  • Consider the GDP data in the table below for some economy for the years 2012 through...

    Consider the GDP data in the table below for some economy for the years 2012 through 2015. Real GDP is calculated using the chain-weighted method. 2012 1,250 1,000 2013 2015 2,800 2,030 2014 Nominal GDP Real GDP Suppose you were told that the value of A is 1,600, the value of B is 2,240, the value of C is 1,450, and the value of D is 1,624. If you were to use the year 2015 as the base 3? (Do...

  • a) What was the value of the GDP deflator in 1999, in 2000 (b) What was...

    a) What was the value of the GDP deflator in 1999, in 2000 (b) What was the inflation rate in 2000 using the GDP deflator! 9. Tropical Republic produces only bananas and coconuts. The base year is 2010, an tables give the quantities produced and the prices. Quantities Bananas Coconuts 2010 2011 70 bunches SO bunches 40 bunches 60 bunches Prices Bananas Coconuts 2010 $3 a bunch $8 a bunch 2011 $5 a bunch $9 a bunch (a) (4 points)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT