_____________ represent dollars stated in terms of constant purchasing power.
A. Nominal dollars
B. Real dollars
C. Inflated dollars
D. None of the items listed
Ans B. Real dollars
Real dollars represent dollars stated in terms of constant purchasing power.
_____________ represent dollars stated in terms of constant purchasing power. A. Nominal dollars B. Real dollars...
a. Using the information below, and assuming that you want to maintain your purchasing power from 2011, what nominal wage should you demand in each of the given years? Instructions: Round your answers to two decimal places. CPI Values and Nominal Wages Nominal Wage (dollars) S80,500 ces Year 2011 2012 2013 2014 2014 CPI 228.3 233,7 235.3 240.8 | b. Assume that your annual wage in 2014 was $85,540. This represent (Click to select) a nominal raise but a decline...
If Purchasing power parity (PPP) holds, a. the real exchange rate increases b. the real exchange rate decreases c. the real exchange rate does not change d. prices in the foreign country will increase
When the real rate of interest is less than the nominal rate of interest, then: A. inflation must be added to the nominal rate. B. investment returns do not increase purchasing power. C. nominal flows should be discounted with real rates. D. inflation is expected to occur.
Gross National Product measured in constant dollars is called GNP. current real weighted nominal deflated
How nominal exchange rate is different from real exchange rate? What is the relationship between purchasing-power parity and exchange rates? 3.What is the impact on new housing investment, if there is a decrease in real interest rates? (5 points) 4.What is the impact on the loanable funds market, if the quantity of loanable funds supplied is more than the quantity demanded?
20. What does purchasing-power parity imply? a. that real incomes should be the same in all countries b. that the nominal exchange rates should be equal to 1 for all currencies c. that the price of a standard hamburger should be the same everywhere d. that the rent for an apartment should be the same everywhere 11. What is the most likely effect of an appreciation of the Canadian real exchange rate...
Which of the following types of returns capture the changes in purchasing power? Multiple Choice Nominal returns Real returns Income yield Capital gains yield
Nominal and real GDP The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2007 dollars), and population (in thousands) of Canada in 1966, 1976, 1986, 1996, 2006, and 2016. The Canadian price level rose consistently over the period 1966–2016. Year nominal GDP ( billions of dollars) real GDPBILLIONS OF 2007 DOLLARS POPULATION thousands 1966 64.8 431.9 19998 1976 200 658 23414 1986 524.5 897 26067 1996 857 1104.3 29570 2006 1492.2 1541.7...
Calculate the real exchange rates (for the US) for the cases below. Does Purchasing power parity hold in the examples below? a) A Toyota Camry costs $25,000 in the US whereas it costs €22,000 in Germany. The nominal exchange rate is €0.8/$. b) An English breakfast costs £5 in England whereas it costs $8 in the US. The nominal exchange rate is £0.75/$. c) An identical hat costs $5 in the US and 100 pesos in Mexico. The nominal exchange...
The purchasing power P (in dollars) of an annual amount of A dollars after t years of 5% inflation decays according to the following formula.+ P = Ae-0.050 (a) How long will it be before a pension of $70,000 per year has a purchasing power of $30,000? (Round your answer to two decimal places.) t = yr (b) How much pension A would be needed so that the purchasing power P is $50,000 after 11 years? (Round your answer to...