Suppose the real interest rate in the economy is 3% and the nominal interest rate is...
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...
Suppose the real interest rate is 3% and expected inflation is 3%. What is the nominal interest rate? nominal interest rate:
You are given the following information about the economy: the nominal interest rate percent; the real rate of interest = 6 percent. The inflation premium is: O 8 percent O 2 percent 6 percent 14 percent
(a) Suppose that the Fisher hypothesis holds for an economy that has an expected real interest rate r of 2%. For each of the expected inflation rates πe of 2, 4, 6, 8, and 10%, calculate the nominal interest rate i and the after-tax expected real interest rate ia if a tax rate t of 20% is imposed on the nominal interest rates. (b) Discuss the possible societal effects of taxes on nominal interest rates.
short answer required 3. Suppose that velocity of money and output are . Gulf constant and the fresher effect both hold what happens to inflation real interest rate and nominal interest rate when the money supply growth rate increases from (096) to (5%)? 4. Why might a favorable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase frictional unemployment? 5. How young population effect economic development? 6....
The nominal interest rate is 12%. The inflation rate is 3%. The real interest rate is equal to %.
You are given the following information about the economy: the nominal interest rate = 8%; the real rate of interest -6%.The inflation premium is Η Ο Ο Ο Ο
The nominal interest rate is the: same as the real interest rate. rate of interest that investors pay to borrow money. rate of inflation minus the real rate of interest. real rate of interest minus the rate of 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%
If the nominal rate of interest is 13.94 %13.94% and the real rate of interest is 7.3 %7.3%, what is the expected rate of inflation? The expected rate of inflation is nothing%