Suppose you have $6,000 in savings when the price level index is at 100. a. What...
Suppose you have $6,000 in savings when the price level index is at 100.
a. What is the real value of your savings if the price level increases by 10 percent for the year?
b. What is the real value of your savings if the price level declines by 5 percent for the year?
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Suppose you have $6,000 in savings when the price level index is
at 100.
a. What...
6 Saved Suppose you have $10,000 in savings when the price level index is at 100....
6 Saved Suppose you have $10,000 in savings when the price level index is at 100. Instructions: Enter your responses rounded to the nearest whole number. a. What is the real value of your savings if the price level increases by 6 percent for the year? b. What is the real value of your savings if the price level declines by 2 percent for the year? $ < Prey 3 of 7 III Score answer > FI F2 80 F3...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 an...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 and $215, and that data set C represents the relevant aggregate supply schedule for the economy Price Level Price Level Price Level Real GDP Real GDP Real GDP 100 215 110 110 240 290 100 100 100 240 265 240 95 95 240 240 100 265 215 100 90 240 90 290 Instructions: Enter your answers as whole...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
Tim Hortons paid its line workers $10 per hour lest yeer when the Consumer Price Index...
Tim Hortons paid its line workers $10 per hour lest yeer when the Consumer Price Index wes 100 Suppose over the past year, deflation occurred and the aggregate price level fe Tim Hortons paid its line workers $10 per hour last year when the to 80 instructions: Round your answers to two decimal places this year in order to keep the real wage fixed ot $10 a. Tim Hortons must pay its workers s b. Tim Hortons must pay its...
Suppose that an economy is characterized by M-$10 trillion V- 1.8 P-base index 1.0 nstructions: E...
Please only answer if 100% sure I keep getting incorrect
responsesSuppose that an economy is characterized by M-$10 trillion V- 1.8 P-base index 1.0 Instructions: Enter your responses rounded to two decimal places (do not include a negative sign ()with your answers). a. What is the real value of output (Q)? $18 trillion Now assume that the Fed increases the money supply by 20 percent and velocity remains unchanged b. If the price level remains constant, by how much will real output increase? c....
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
Real vs. Nominal Interest Rates. Suppose the nominal value of your savings increased from $5000 t...
Real vs. Nominal Interest Rates. Suppose the nominal value of your savings increased from $5000 to $5350 between 2017 and 2018. 5. Calculate the annual nominal idterest rate that you earned on your savings. Suppose the CPl increased from 100 to 102 between 2017 and 2018. What is the growth rate of the real value of your savings? Suppose you had expected the inflation rate to be 1%. Compared to your expectation, are you better off or worse off a....
Suppose the consumer price index in 2015 is 100 and a shirt costs $50. In 2017,...
Suppose the consumer price index in 2015 is 100 and a shirt costs $50. In 2017, the consumer price index is 110. Which of the following is true? (a) The shirt is cheaper in real terms in 2015 if it costs $45 (b) The shirt is more expensive in real terms in 2017 if it costs $60 (c) The shirt is cheaper in real terms in 2017 if it costed $55 (d) The shirt is the same price in real...
23, Refer to Figure 7-1. Based on the figure, a the price level has fallen since...
23, Refer to Figure 7-1. Based on the figure, a the price level has fallen since 1965 b. the price level in 1985 was low er than in 1980 c. the price level fell from 1980 to 1990 d the price level has not fallen since 1965 e. the base year is 1965 24. Parvez is trying to decide whether or not he should lend $1,000 to li for a year. li would pay a fixed nominal interest rate of...
2. Inflation and real interest rates (10 points total) a) Suppose that the consumer price index...
2. Inflation and real interest rates (10 points total) a) Suppose that the consumer price index was 100 on January 1st, 2000 and 105.5 on January 1st, 2001. Determine the inflation rate between the two dates. Show your work. (5 points) b) Suppose that the consumer price index was 100 on January 1st, 2000 and 98 on January 1st, 2001. Determine the inflation rate between the two dates. Show your work. (5 points)
6 Saved Suppose you have $10,000 in savings when the price level index is at 100. Instructions: Enter your responses rounded to the nearest whole number. a. What is the real value of your savings if the price level increases by 6 percent for the year? b. What is the real value of your savings if the price level declines by 2 percent for the year? $ < Prey 3 of 7 III Score answer > FI F2 80 F3...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 and $215, and that data set C represents the relevant aggregate supply schedule for the economy Price Level Price Level Price Level Real GDP Real GDP Real GDP 100 215 110 110 240 290 100 100 100 240 265 240 95 95 240 240 100 265 215 100 90 240 90 290 Instructions: Enter your answers as whole...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
Tim Hortons paid its line workers $10 per hour lest yeer when the Consumer Price Index wes 100 Suppose over the past year, deflation occurred and the aggregate price level fe Tim Hortons paid its line workers $10 per hour last year when the to 80 instructions: Round your answers to two decimal places this year in order to keep the real wage fixed ot $10 a. Tim Hortons must pay its workers s b. Tim Hortons must pay its...
Please only answer if 100% sure I keep getting incorrect
responsesSuppose that an economy is characterized by M-$10 trillion V- 1.8 P-base index 1.0 Instructions: Enter your responses rounded to two decimal places (do not include a negative sign ()with your answers). a. What is the real value of output (Q)? $18 trillion Now assume that the Fed increases the money supply by 20 percent and velocity remains unchanged b. If the price level remains constant, by how much will real output increase? c....
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
Real vs. Nominal Interest Rates. Suppose the nominal value of your savings increased from $5000 to $5350 between 2017 and 2018. 5. Calculate the annual nominal idterest rate that you earned on your savings. Suppose the CPl increased from 100 to 102 between 2017 and 2018. What is the growth rate of the real value of your savings? Suppose you had expected the inflation rate to be 1%. Compared to your expectation, are you better off or worse off a....
23, Refer to Figure 7-1. Based on the figure, a the price level has fallen since 1965 b. the price level in 1985 was low er than in 1980 c. the price level fell from 1980 to 1990 d the price level has not fallen since 1965 e. the base year is 1965 24. Parvez is trying to decide whether or not he should lend $1,000 to li for a year. li would pay a fixed nominal interest rate of...
2. Inflation and real interest rates (10 points total) a) Suppose that the consumer price index was 100 on January 1st, 2000 and 105.5 on January 1st, 2001. Determine the inflation rate between the two dates. Show your work. (5 points) b) Suppose that the consumer price index was 100 on January 1st, 2000 and 98 on January 1st, 2001. Determine the inflation rate between the two dates. Show your work. (5 points)
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