Homework Answers
Menu costs are the cost that results from price changes so if actual inflation and expected inflation are the same then menu cost matters
So option D is the correct statement.
Add Answer to:
Which inflation cost matters even if actual inflation and expected inflation are the same? losses in...
Question 37 (1 point) Which inflation cost matters even if actual inflation and expected inflation are...
Question 37 (1 point) Which inflation cost matters even if actual inflation and expected inflation are the same? losses in real income production costs losses in tax revenue menu costs Question 38 (1 point) You put money in an account that earns 8 percent. The inflation rate is 4 percent, and your marginal tax rate is 10 percent. What is your after-tax real rate of interest? 3.3 percent 3.2 percent 1.0 percent 3.4 percent
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution...
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution margin margin of safety unanticipated profit. target net income. Question 22 Cost structure cannot be significantly changed by companies generally has little impact on profitability. refers to the relative proportion of fixed versus variable costs that a company incurs. refers to the relative proportion of operating versus nonoperating costs that a company incurs Question 19 The break-even point is where total sales equal total...
Suppose the nominal interest rate equals 9%, the expected inflation rate is 5%, and actual inflation...
Suppose the nominal interest rate equals 9%, the expected inflation rate is 5%, and actual inflation turns out to be 3%. In this case, the: a. ex ante real interest rate is 4%. b. ex post real interest rate is 4%. C. ex ante real interest rate is 6%. d. ex post real interest rate is 2%
Suppose the nominal interest rate on savings accounts is 11% per year, and both actual and expected inflation are equal to 5%.
6. The Fisher effect and the cost of unexpected inflation Suppose the nominal interest rate on savings accounts is 11% per year, and both actual and expected inflation are equal to 5%. Complete the first row of the table by filling in the expected real interest rate and the actual real interest rate before any change in the money supply. Now suppose the Fed unexpectedly increases the growth rate of the money supply, causing the inflation rate to rise unexpectedly from 5% to...
Suppose that velocity of money is constant, the expected inflation rate is equal to the actual...
Suppose that velocity of money is constant, the expected inflation rate is equal to the actual inflation rate, and the expected real interest rate is 4%. Answer the following questions. Justify your answers. Does the quantity theory allow for money to be used for assets and risk diversification purposes? When the growth rate of money supply is 7% and the growth rate of real GDP is 3%, what is the nominal interest rate? Let the growth rate of money supply...
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic...
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would result in a change in any security return of __ BINFLATION. O 9.2 0 -3.2 O 3.0 O 6.2 O 3.2
The expected real rate of interest is 0.5%, actual inflation over the last year was -0.05%,...
The expected real rate of interest is 0.5%, actual inflation over the last year was -0.05%, and the nominal interest rate is currently 0.28%. According to the Fisher equation, what is the expected inflation (in %) over the next year, dPe? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15
The expected real rate of interest is 0.6%, actual inflation over the last year was 3%,...
The expected real rate of interest is 0.6%, actual inflation over the last year was 3%, and expected inflation over the next year is 7.4%. What is the current level of nominal interest rates (in %) predicted by the Fisher equation? Round to 0.01%. E.g., if your answer is 3.145%, record it as 3.15.
Suppose that expected inflation rises by 8 percent at the same time that the yields on...
Suppose that expected inflation rises by 8 percent at the same time that the yields on money and on non-money assets both rise by 8 percent. What will happen to the demand for money? The expected real yields on money and on non-money assets (Click to select) and the demand for money ( (Click to select) What if ex cted inflation rose by only 7 percent? The expected real yields on money and on non-money assets both and the demand...
Macroeconomic Canadian education Chapter 4 Money and Inflation 65 The Real Cost of Borrowing and the...
Macroeconomic Canadian education
Chapter 4 Money and Inflation 65 The Real Cost of Borrowing and the Real Interest Rate In this exercise, we see why the real cost of borrowing is equal to the real interest rate. 5. Since a borrower's actual dollar payments are based on the nominal interest a. rate, it is sometimes difmicult to see why the real cost of borrowing is equal to the real interest rate. Consider a family that buys a new house for...
Question 37 (1 point) Which inflation cost matters even if actual inflation and expected inflation are the same? losses in real income production costs losses in tax revenue menu costs Question 38 (1 point) You put money in an account that earns 8 percent. The inflation rate is 4 percent, and your marginal tax rate is 10 percent. What is your after-tax real rate of interest? 3.3 percent 3.2 percent 1.0 percent 3.4 percent
The amount by which actual or expected sales exceeds break-even sales is referred to as contribution margin margin of safety unanticipated profit. target net income. Question 22 Cost structure cannot be significantly changed by companies generally has little impact on profitability. refers to the relative proportion of fixed versus variable costs that a company incurs. refers to the relative proportion of operating versus nonoperating costs that a company incurs Question 19 The break-even point is where total sales equal total...
Suppose the nominal interest rate equals 9%, the expected inflation rate is 5%, and actual inflation turns out to be 3%. In this case, the: a. ex ante real interest rate is 4%. b. ex post real interest rate is 4%. C. ex ante real interest rate is 6%. d. ex post real interest rate is 2%
If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, would result in a change in any security return of __ BINFLATION. O 9.2 0 -3.2 O 3.0 O 6.2 O 3.2
Suppose that expected inflation rises by 8 percent at the same time that the yields on money and on non-money assets both rise by 8 percent. What will happen to the demand for money? The expected real yields on money and on non-money assets (Click to select) and the demand for money ( (Click to select) What if ex cted inflation rose by only 7 percent? The expected real yields on money and on non-money assets both and the demand...
Macroeconomic Canadian education
Chapter 4 Money and Inflation 65 The Real Cost of Borrowing and the Real Interest Rate In this exercise, we see why the real cost of borrowing is equal to the real interest rate. 5. Since a borrower's actual dollar payments are based on the nominal interest a. rate, it is sometimes difmicult to see why the real cost of borrowing is equal to the real interest rate. Consider a family that buys a new house for...
Most questions answered within 3 hours.
-
There are four different math books, six statistics and two
physics books which should be accommodated...
asked 14 minutes ago -
QUESTION 17
The Age Discrimination in Employment Act prohibits specific
employers from discriminating against persons who...
asked 14 minutes ago -
(Python) In the Unified Modeling Language, which symbol
indicates that objects of the Music class contain...
asked 17 minutes ago -
Question #2. An assest was purchased for
$100,000 on 1 January 20X5 and straight line depreciation...
asked 20 minutes ago -
You notice that the type of phone someone has and the computer
operating system they use...
asked 20 minutes ago -
You are analyzing samples under a microscope, and one sample
comes from what you suspect is...
asked 37 minutes ago -
The Martin-Beck Company operates a plant in St. Louis with an
annual capacity of 30,000 units....
asked 45 minutes ago -
Do you expect taurine to be a stronger or weaker acid than H2SO4
and/or H2SO3? please...
asked 35 minutes ago -
Draw the structure of (2R,5R)-2-bromo-5-methylheptanal.
asked 45 minutes ago -
Lean Manufacturing system is strictly driven by Pull System?
TRUE or FALSE
asked 44 minutes ago -
What is an increase in supply?
a.
An upward movement in the position of the supply...
asked 43 minutes ago -
The probabilities that an engineering student will get an A, C,
or F on an engineering...
asked 1 hour ago