Changes to the interest rate offered on savings accounts

Assignment Help Macroeconomics
Reference no: EM132600838

Mr. D is thinking about retirement, and decides to save an amount S to finance his future consumption. Mr. D reads the article, and he comes to the conclusion that inflation π will be higher than he had previously anticipated. Mr. D goes to the local bank to check whether the nominal interest rate i offered has changed, but he finds that the bank has made no changes to the interest rate offered on savings accounts. In light of this information, do you think that Mr.D will change his savings S? Please explain your reasoning.

Reference no: EM132600838

Questions Cloud

Prepare the journal entries by both Gless and Century : When Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries by both Gless and Century
What is the carrying value of the note as of September : Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2021
Application security relate to software development : How does Application Security relate to software development? Discuss two software development approaches. discuss the high-level principles/approach
Prepare the journal entries to record the purchase : Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021
Changes to the interest rate offered on savings accounts : In light of this information, do you think that Mr.D will change his savings S? Please explain your reasoning.
Gender roles in negotiation and conflict management : Discuss from your personal point of view the advantages/disadvantages and like/dislike of working for each gender.
What is the dividend income from Bank X : What is the dividend income from Bank X reported under Bank A's primary financial statements for the year ended December 31, 2021
Quantity of labor supplied and quantity of labor demanded : Give at least 10 explanations for why firms might find it profitable to pay wages above the level that balances
Negotiation and conflict management : Introduction of our main topic Negotiation and Conflict Management. How/why did the conflict escalate? How was the conflict resolved?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd