Assume the expected inflation rate is 4.1 percent. If the current rate of interest is 6.8...
Assume the expected inflation rate is 4.1 percent. If the current rate of interest is 6.8 percent, what should the nominal of interest be? The nominal rate of interest should be.
Homework Answers
Nominal rate of interest =Current rate of interest + Inflation rate + (Current rate of interest x Inflation rate)
= 6.8% + 4.1% + (6.8% x 4.1%)
= 11.18%
Add Answer to:
Assume the expected inflation rate is 4.1 percent. If the
current rate of interest is 6.8...
Assume the current spot rate for the Norwegian krone is $1 = NKr7.0323, the expected inflation...
Assume the current spot rate for the Norwegian krone is $1 = NKr7.0323, the expected inflation rate in Norway is 2.1 percent and 1.2 percent in the U.S. A risk-free asset in the U.S. is yielding 3.7 percent. What nominal risk-free rate of return should you expect on a Norwegian security? 4.2% 2.9% 4.6% 3.8% 3.1%
The interest rate (yield) on Treasury bonds is 4.1% and the expected inflation rate is 2.4%....
The interest rate (yield) on Treasury bonds is 4.1% and the expected inflation rate is 2.4%. What is the exact real rate of interest rate?
Assume that the expected inflation of India is 6 percent while the expected inflation in United...
Assume that the expected inflation of India is 6 percent while the expected inflation in United Kingdom is 3 percent. Suppose that international capital flows equalize the real interest rates in the two countries and that purchasing- power parity holds so that the nominal exchange rate remains the same. Taking India's perspective, what is the expected change (as a number in percentage terms) in the real exchange rate between the British Pound and the Indian Rupee? Give your answer as...
Assume that the expected inflation of India is 8 percent while the expected inflation in United...
Assume that the expected inflation of India is 8 percent while the expected inflation in United Kingdom is 2 percent. Suppose that international capital flows equalize the real interest rates in the two countries and that purchasing-power parity holds so that the nominal exchange rate remains the same. Taking India's perspective, what is the expected change (as a number in percentage terms) in the real exchange rate between the British Pound and the Indian Rupee? Give your answer as a...
If the nominal interest rate is 7.5 percent and the inflation rate is 4.0 percent, what...
If the nominal interest rate is 7.5 percent and the inflation rate is 4.0 percent, what is the real interest rate?
If the nominal interest rate is 7.9 percent and the inflation rate is 3.0 percent, the real interest rate is ___________...
If the nominal interest rate is 7.9 percent and the inflation rate is 3.0 percent, the real interest rate is _______________ percent.
The nominal interest rate is 8 percent and the inflation rate is 3 percent. What is...
The nominal interest rate is 8 percent and the inflation rate is 3 percent. What is the real interest rate? a. 8 percent b. 2 percent c. 11 percent d. 5 percent
Suppose the real interest rate is 3% and expected inflation is 3%, what is the nominal...
Suppose the real interest rate is 3% and expected inflation is 3%. What is the nominal interest rate?nominal interest rate: = _______ %All else equal, if inflation decreases by 0 %, what will happen to the nominal interest rate?The real interest rate will decrease by 0 %.The nominal interest rate will decrease by 0 %.The nominal interest rate will increase by 0 %.The real interest rate will increase by 0 %.What do economists call the relationship between the nominal interest...
The real rate of interest is 3 percent and inflation is 4 percent. What is the...
The real rate of interest is 3 percent and inflation is 4 percent. What is the nominal rate of interest? Multiple Choice A. 3.00 percent B. 1.00 percent C. 7.12 percent D. -1.00 percent
A one-year U.S. Treasury security has a nominal interest rate of 2.25 percent. If the expected...
A one-year U.S. Treasury security has a nominal interest rate of 2.25 percent. If the expected real rate of interest is 1.5 percent, what is the expected annual inflation rate?
Assume that the expected inflation of India is 6 percent while the expected inflation in United Kingdom is 3 percent. Suppose that international capital flows equalize the real interest rates in the two countries and that purchasing- power parity holds so that the nominal exchange rate remains the same. Taking India's perspective, what is the expected change (as a number in percentage terms) in the real exchange rate between the British Pound and the Indian Rupee? Give your answer as...
Assume that the expected inflation of India is 8 percent while the expected inflation in United Kingdom is 2 percent. Suppose that international capital flows equalize the real interest rates in the two countries and that purchasing-power parity holds so that the nominal exchange rate remains the same. Taking India's perspective, what is the expected change (as a number in percentage terms) in the real exchange rate between the British Pound and the Indian Rupee? Give your answer as a...
Most questions answered within 3 hours.
-
S sells property with a $500 basis to B for $450, and B later
sells the...
asked 5 seconds ago -
On January 1, 20X7, Green Corp. paid $1,020,000 to acquire Wax
Co. Wax maintained separate incorporation....
asked 1 minute ago -
C++
Write a class Fraction that defines adding, subtracting,
multiplying, and dividing fractions by overloading standard...
asked 1 hour ago -
This java code won't run and I can't figure out the problem with
it. Please help...
asked 2 hours ago -
Trace the following recursive methods:
a) isPal with the string “abccda”
b) isAnBn with the string...
asked 3 hours ago -
1. Which of the following is false about photosynthesis?
A. ATP is the molecule used to...
asked 4 hours ago -
A simple random sample of size n=64 is obtained from a
population with a mean of...
asked 5 hours ago -
(2 dimensions, 1 object, 2 accelerations)
1) A projectile is thrown with a wind. The wind...
asked 5 hours ago -
Brian makes $34,100 per year. How much can Brian expect to
contribute to FICA taxes in...
asked 6 hours ago -
To buy a new house you must borrow $155,000. To do this you take
out a...
asked 6 hours ago -
Spacely Sprockets is evaluating the construction of a new plant
on land the company purchased for...
asked 7 hours ago -
1. Consider a linear regression model of y on K regressors and
an intercept.
(i) Describe...
asked 7 hours ago