If you fear that inflation will soon move about 4% annually, and you are trying to...
If you fear that inflation will soon move about 4% annually, and you are trying to
accumulate funds for your daughter’s education, what type of safe government
investments should you consider?
Homework Answers
If there is a fear of inflation and there must be some type of securities to have safe return in the future for daughter education, the following option can be taken-
1 Treasury options like teasury bills treasury- securities are issued by the Federal government and returns the entire amount with face value, when the security matures.
2 .Saving bonds- it is also one of the safest types of investment because it is directly promoted nd controlled by the federal government
Add Answer to:
If you fear that inflation will soon move about 4% annually, and
you are trying to...
You observe that the inflation rate in the United States is 1.9 percent per year and...
You observe that the inflation rate in the United States is 1.9
percent per year and that T-bills currently yield 2.4 percent
annually. Use the approximate international Fisher effect to answer
the following questions.
a.
What do you estimate the inflation rate to be in Australia, if
short-term Australian government securities yield 4 percent per
year? (Enter your answer as a percent rounded to 1 decimal
place, e.g., 32.1.)
b.
What do you estimate the inflation rate to be in...
(c) If you cared primarily about inflation and not much about output, which option would you...
(c) If you cared primarily about inflation and not much about
output, which option would you recommend? Why?
(d) Explain the general trade-off that policymakers are faced with
according to the Phillips curve.
5. An oil shock: Consider an economy that begins with output at its potential level and a relatively high inflation rate of 6%, reflecting some recent oil price shocks. As the head of the Federal Reserve, your job is to pick a sequence of short-run output levels...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2.5%. a) What is the real interest rate? (2 pts) 5) How much money is in your account at the end of the year? (In nominal amount) (3 pt - What is the real purchasing power of that amount? (In real amount) (3 pts)
3. Workhorses You are working in a 19th century warehouse trying to move a 200 kg...
3. Workhorses You are working in a 19th century warehouse trying to move a 200 kg box across the floor. Previous workers have estimated that the force of friction exerted by the floor on a box of this size and type is 1000 N. You harness two horses to the box. Albert Horse pulls in a direction 10° west of north and Gwnedolyn Horse pulls in a direction 20° east of north. The box slides due north at a constant...
4. Your small company has $25,000 in surplus cash right now. You don't want to commit...
4. Your small company has $25,000 in surplus cash right now. You don't want to commit these funds to any long-term investments because you know of some expenses coming up in about eight months that will require the use of this cash. But you would like to find some safe, liquid interest-earning investments where you could park your cash until it is needed. You've decided that T-bills and money market mutual funds are your best options, but you want to...
Q25) Imagine you are a consumer trying to find information about a government hospital you plan...
Q25) Imagine you are a consumer trying to find information about a government hospital you plan to visit for upper respiratory tract infection (URTI), what sources could you use to measure their performance and how these sources could affect your decision making? (Assume that published data is available on how hospitals and providers compare to acceptable clinical standards with regard to respiratory tract infections)
5. Suppose that soon after earning your bachelor's degree you are accepted into an MBA program...
5. Suppose that soon after earning your bachelor's degree you are accepted into an MBA program at a prestigious university. It is an intensive program that would require you to be a full-time student for about eighteen months. What are the major financial costs and benefits of enrolling in this program? (Hint: be sure to consider not just the out-of-pocket costs, but also any other financial sacrifices you might have to make if you became a full-time student.) Describe how...
You are trying to move a light fixture into an apartment. There are hooks in the elevator so you ...
You are trying to move a light fixture into an apartment. There are hooks in the elevator so you hang the fixture on a hook with a chain. You don't want the fixture to touch the walls so you attach a rope to the side and are pulling horizontally as shown, holding the fixture stationary with respect to the elevator. Note 38 degrees chain rope fixture As the elevator ascends verticalily, the magnitude of the force from the chain on...
Lynn Swartz's husband died 3 years ago. Her parents, who have income of over $200,000 per...
Lynn Swartz's husband died 3 years ago. Her parents, who have income of over $200,000 per year, want to ensure that funds will be available for the education of Lynn's 8-year-old son, Eric. Lynn is currently earning $45,000 a year. Lynn's parents have suggested that they start a savings account for Eric. They have calculated that if they invest $4,000 per year for the next 8 years, sufficient funds will be available at the end of 10 years for Eric's...
6. (4) You are trying to make a synthetic copy of a particular protein but accidentally...
6. (4) You are trying to make a synthetic copy of a particular protein but accidentally join the amino acids together in exactly the reverse order. One of your classmates says the two proteins must be identical, and bets you $20 that your synthetic protein will have exactly the same biological activity as the original. After having read this chapter, you have no hesitation in staking your $20 that it won’t. What particular feature of a polypeptide chain makes you...
You observe that the inflation rate in the United States is 1.9
percent per year and that T-bills currently yield 2.4 percent
annually. Use the approximate international Fisher effect to answer
the following questions.
a.
What do you estimate the inflation rate to be in Australia, if
short-term Australian government securities yield 4 percent per
year? (Enter your answer as a percent rounded to 1 decimal
place, e.g., 32.1.)
b.
What do you estimate the inflation rate to be in...
(c) If you cared primarily about inflation and not much about
output, which option would you recommend? Why?
(d) Explain the general trade-off that policymakers are faced with
according to the Phillips curve.
5. An oil shock: Consider an economy that begins with output at its potential level and a relatively high inflation rate of 6%, reflecting some recent oil price shocks. As the head of the Federal Reserve, your job is to pick a sequence of short-run output levels...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2.5%. a) What is the real interest rate? (2 pts) 5) How much money is in your account at the end of the year? (In nominal amount) (3 pt - What is the real purchasing power of that amount? (In real amount) (3 pts)
3. Workhorses You are working in a 19th century warehouse trying to move a 200 kg box across the floor. Previous workers have estimated that the force of friction exerted by the floor on a box of this size and type is 1000 N. You harness two horses to the box. Albert Horse pulls in a direction 10° west of north and Gwnedolyn Horse pulls in a direction 20° east of north. The box slides due north at a constant...
4. Your small company has $25,000 in surplus cash right now. You don't want to commit these funds to any long-term investments because you know of some expenses coming up in about eight months that will require the use of this cash. But you would like to find some safe, liquid interest-earning investments where you could park your cash until it is needed. You've decided that T-bills and money market mutual funds are your best options, but you want to...
5. Suppose that soon after earning your bachelor's degree you are accepted into an MBA program at a prestigious university. It is an intensive program that would require you to be a full-time student for about eighteen months. What are the major financial costs and benefits of enrolling in this program? (Hint: be sure to consider not just the out-of-pocket costs, but also any other financial sacrifices you might have to make if you became a full-time student.) Describe how...
You are trying to move a light fixture into an apartment. There are hooks in the elevator so you hang the fixture on a hook with a chain. You don't want the fixture to touch the walls so you attach a rope to the side and are pulling horizontally as shown, holding the fixture stationary with respect to the elevator. Note 38 degrees chain rope fixture As the elevator ascends verticalily, the magnitude of the force from the chain on...
Lynn Swartz's husband died 3 years ago. Her parents, who have income of over $200,000 per year, want to ensure that funds will be available for the education of Lynn's 8-year-old son, Eric. Lynn is currently earning $45,000 a year. Lynn's parents have suggested that they start a savings account for Eric. They have calculated that if they invest $4,000 per year for the next 8 years, sufficient funds will be available at the end of 10 years for Eric's...
Most questions answered within 3 hours.
-
Please research on the case study companies listed in the
corresponding questions.
Write meaningful answers linking...
asked 5 minutes ago -
Product differentation:
A. is successful if a firm faces a relatively inelastic demand
curve
B. if...
asked 7 minutes ago -
You have been hired as employee number 20 of a start-up company
and have been offered...
asked 8 minutes ago -
Even when an English-speaker is conducting international
business in the United Kingdom, confusion can occur. Can...
asked 15 minutes ago -
assuming first order kinetics, what is the half life of a
compound if 87.5% of a...
asked 14 minutes ago -
A transformer has 490 turns on its primary. An AC source
supplies 120 Vrms on the...
asked 19 minutes ago -
An electron is trapped in a one-dimensional infinite well of
width 370 pm and is in...
asked 26 minutes ago -
Family Supermarkets has decided to increase the size of its
Lansing store. It wants information about...
asked 30 minutes ago -
A company produces and sells two products. Data concerning those
products for the most recent month...
asked 33 minutes ago -
When the epiglottis doesn’t move correctly, it can lead to
choking.
constipation.
heartburn.
vomiting.
asked 34 minutes ago -
With the rise of social media and digital platforms, some say
"Print is dead". So, what...
asked 42 minutes ago -
Python Code Question# 1
General Instructions
Create a class called LawnService that takes in the length...
asked 48 minutes ago