The infaltion rate decreases from 3% to 1.5% from last year to this year. It implies on average, price fells between last year and this year.
Answer: Option (C)
Suppose the inflation rate was 3% last year and is 1.5% this year. This means that...
Suppose that the GDP deflator grew by 10 percent from last year to this year. That is, the inflation rate this year was 10 percent This means that overall: real GDP in the economy has risen by 10 percent. output in the economy rose by 10 percent Oprices in the economy have risen by 10 percent. O real GDP and prices both rose by 10 percent This inflation rate implies that the growth rate in real GDP was 10 percent:...
Suppose that the GDP deflator grew by 10 percent from last year to this year. That is, the inflation rate this year was 10 percent. This means that overall: Oreal GDP in the economy has risen by 10 percent. output in the economy rose by 10 percent Oprices in the economy have risen by 10 percent Oreal GDP and prices both rose by 10 percent This inflation rate implies that the growth rate in real GDP was 10 percent: less...
D Question 41 By law, banks are allowed to lend an amount equal to their Oloanable funds deposits required reserves O excess reserves ols • Previous 9 30 . 20 GOD F4 F3 A & a # 3 $ 4 % 5 8 r 2 Question 42 Identify the following as explicit costs or implicit costs. Joe takes a week off from his job to care for his grandmother. I Select) Nancy quits her job and goes back to college....
Type your answer in the box. Suppose that nominal GDP last year was $25 million and is $27 million this year. Also suppose that inflation between last year and this year was 10%. This means that real GDP this year (using last year's prices) is $ million (round to two decimal points).
Q: Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos: A. fell and the supply of them also fell, increasing their value. B. rose and the supply of Mexican pesos fell, decreasing their value. C. decreased and the supply of them increased, which led to a depreciation of the Mexican peso relative to the rest of the world's currencies D. rose and...
Suppose you compare your income this year and last year and find that your nominal income fell but your real income rose. How could this have happened?
Q007 Future Value -Present Value 1 a. Suppose that the inflation rate is 3.8% (which means that the overall level of prices is rising 3.8% a year). How many years will it take for the overall level of prices to double? Solution: We want to find the number of years it will take for $1 worth of goods or services to cost $2. Think of $1 as the present value and $2 as the future with an interest rate of...
10 Suppose that the world price of coffee fell by 10% last year and the quantity purchased fell by 5%. Which one of the following could explain this? a) There was a rise in supply from a producer country, but no change in demand conditions. b) Demand for coffee rose owing to higher incomes in consumer countries.
The following diagram shows the rate of Inflation each year during a five year span. Use this diagram to answer the next question Percentage Change from the Previous Year 1 2 3 4 2 т In which year did prices go down? To o o o < Pey и за I lest > онаа л а а т The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the...
The real risk-free rate, r*, is 1.5%. Inflation is expected to average 1.2% a year for the next 4 years, after which time inflation is expected to average 4.3% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 9.5%, which includes a liquidity premium of 0.7%. What is its default risk premium? Do not round intermediate calculations. Round your answer to two decimal places. %