Homework Answers
Ans-(c) none of the above is the correct answer
Because real interest rate is given 5% & expected inflation rate is equal to the 4%
Purchasing capacity is equal to the 1% only
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This Question: 1 pt 18 of 30 (10 complete) If the real interest rate relevant to...
If the real interest rate is 7 percent and the expected inflation rate is 2 percent,...
If the real interest rate is 7 percent and the expected inflation rate is 2 percent, what would a person expect to have after a year? Select one: a. 2 percent less dollars, which will purchase 7 percent more goods b. 10 percent more dollars, which will purchase 6 percent more goods. c. 9 percent more dollars, which will purchase 7 percent more goods. d. 7 percent more dollars, which will purchase 9 percent more goods. e. 5 percent more...
This Question: 1 pt 10 of 10 (9 complete) The Bank of Canada and the government...
This Question: 1 pt 10 of 10 (9 complete) The Bank of Canada and the government of Canada have agreed that the Bank will achieve an inflation rate target. Which arrangement, inflation targeting or unemployment targeting, would most likely provide price stability? targeting would most likely provide price stability because it would anchor the short-run tradeoff at the rate. O A. Unemployment; natural unemployment B. Inflation; natural unemployment C. Inflation ; expected inflation OD. Unemployment; expected inflation
This Question: 1 pt < 5 of 20 (0 complete) This Test: 20 pts pos: Question...
This Question: 1 pt < 5 of 20 (0 complete) This Test: 20 pts pos: Question Help A group of battery powered toys produced in a day at a factory has a defect rate of 0.5%. Suppose a quality inspector randomly inspects 200 of the toys. Complete the following statement: The quality inspector should expect defective toys, with an error of O A. 1;0.5% OB. 10; 0.5% O C. 10; 5% OD. 1;5% Click to select your answer. « Previous...
Score: 0 of 1 pt 12 of 14 (12 complete) O Discounting Notes-1 (similar to) A...
Score: 0 of 1 pt 12 of 14 (12 complete) O Discounting Notes-1 (similar to) A man has a simple discount note for $6,600, at an ordinary bank discount rate of 8.61%, for 40 days. What is the effective interest rate? Round to the nearest tenth of a percent. The offective interest rate is%. (Round to the nearest tenth of a percent as needed.) Enter your answer in the answer box and then click Check Answer. Ciear All All parts...
Agree or disagree? 75 word reply A nominal interest rate measures the change in dollar amounts....
Agree or disagree? 75 word reply A nominal interest rate measures the change in dollar amounts. It is quoted on bonds and loans. Nominal interest rate is simple; for example, if you borrow $1000 at a 5% interest rate, you can expect to pay $50 in interest without taking inflation into account. The con of using the nominal interest rate is the fact that it does not adjust for the inflation rate. Whereas a real interest rate does take inflation...
ACC-250-T0101 Test: ACC-250 Practice Quiz 1 6 This Question: 1 pt Which of the following events...
ACC-250-T0101 Test: ACC-250 Practice Quiz 1 6 This Question: 1 pt Which of the following events is not recorded by accountants? O A. purchase of a building for $200,000 cash OB. sale of merchandise on account O C. signing a $400,000 note to purchase land OD. effects of an economic boom ACC-250-T0101 Test: ACC-250 Practice Quiz 1 (Topics 1 & This Question: 1 pt Which of the following is a financial statement that presents a business's accounting equation? O A....
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next severa...
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next several years is 3.5%, what interest rate i should be used in project analysis calculations? 10 Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption. Calculate, the number of years it will take for the purchasing power of today's dollars to equal one-third of their present value. Assume...
This Question: 1 pt 10 of 15 (12 complete) A Data Table One of the biggest...
This Question: 1 pt 10 of 15 (12 complete) A Data Table One of the biggest factors in determining the value of a home dollars) for a random sample of homes for sale. Complete part Es: Click the icon to view the data table. = Click the icon to view a table of critical values for the corre (a) Which variable is the explanatory variable? O A. Determining the value of a home OB Number of homes OC. Asking price...
, This Question: 1 pt The graph shows the demand curve for reserves in the market...
,
This Question: 1 pt The graph shows the demand curve for reserves in the market for bank reserves The federal funds target rate is 4 percent Draw the supply of reserves curve determined by the Fed to achieve the federal funds target rate Label it Draw a point at the equilibrium in the market for bank reserves If the Fed raises the Federal funds rate target they undertake an open market O A. purchase, increase O B. sale increase...
People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest...
People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest rate. Therefore, O A. the real rate of interest is 12% and the nominal rate is 4% OB. the real rate of interest is 12% and the nominal rate is 8% O C. the real rate of interest is 4% and the nominal rate is 12% O D. the real rate of interest is 8% and the nominal rate is -4% You are negotiating...
This Question: 1 pt 10 of 10 (9 complete) The Bank of Canada and the government of Canada have agreed that the Bank will achieve an inflation rate target. Which arrangement, inflation targeting or unemployment targeting, would most likely provide price stability? targeting would most likely provide price stability because it would anchor the short-run tradeoff at the rate. O A. Unemployment; natural unemployment B. Inflation; natural unemployment C. Inflation ; expected inflation OD. Unemployment; expected inflation
This Question: 1 pt < 5 of 20 (0 complete) This Test: 20 pts pos: Question Help A group of battery powered toys produced in a day at a factory has a defect rate of 0.5%. Suppose a quality inspector randomly inspects 200 of the toys. Complete the following statement: The quality inspector should expect defective toys, with an error of O A. 1;0.5% OB. 10; 0.5% O C. 10; 5% OD. 1;5% Click to select your answer. « Previous...
Score: 0 of 1 pt 12 of 14 (12 complete) O Discounting Notes-1 (similar to) A man has a simple discount note for $6,600, at an ordinary bank discount rate of 8.61%, for 40 days. What is the effective interest rate? Round to the nearest tenth of a percent. The offective interest rate is%. (Round to the nearest tenth of a percent as needed.) Enter your answer in the answer box and then click Check Answer. Ciear All All parts...
ACC-250-T0101 Test: ACC-250 Practice Quiz 1 6 This Question: 1 pt Which of the following events is not recorded by accountants? O A. purchase of a building for $200,000 cash OB. sale of merchandise on account O C. signing a $400,000 note to purchase land OD. effects of an economic boom ACC-250-T0101 Test: ACC-250 Practice Quiz 1 (Topics 1 & This Question: 1 pt Which of the following is a financial statement that presents a business's accounting equation? O A....
9 An investor wants a real rate of return i' of 10% per year. If the expected annual inflation rate for the next several years is 3.5%, what interest rate i should be used in project analysis calculations? 10 Inflation has been a reality for the general economy of the U.S. in many years. Given this assumption. Calculate, the number of years it will take for the purchasing power of today's dollars to equal one-third of their present value. Assume...
This Question: 1 pt 10 of 15 (12 complete) A Data Table One of the biggest factors in determining the value of a home dollars) for a random sample of homes for sale. Complete part Es: Click the icon to view the data table. = Click the icon to view a table of critical values for the corre (a) Which variable is the explanatory variable? O A. Determining the value of a home OB Number of homes OC. Asking price...
,
This Question: 1 pt The graph shows the demand curve for reserves in the market for bank reserves The federal funds target rate is 4 percent Draw the supply of reserves curve determined by the Fed to achieve the federal funds target rate Label it Draw a point at the equilibrium in the market for bank reserves If the Fed raises the Federal funds rate target they undertake an open market O A. purchase, increase O B. sale increase...
People anticipate the inflation rate to be 8%. Banks are making loans at a 12% interest rate. Therefore, O A. the real rate of interest is 12% and the nominal rate is 4% OB. the real rate of interest is 12% and the nominal rate is 8% O C. the real rate of interest is 4% and the nominal rate is 12% O D. the real rate of interest is 8% and the nominal rate is -4% You are negotiating...
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