Consumer confidence survey

Assignment Help Finance Basics
Reference no: EM131877560

One of the indices that economists use to gauge consumer expectations is the consumer confidence survey. This is an indirect measure of consumer expectations on the health of the economy. If consumer confidence increases, then everything else held constant, this will increase consumer spending. (The opposite is true for a decrease in consumer confidence.) Use the model of loanable funds to determine the effect of an increase in consumer confidence on nominal exchange rates and the nominal interest rates. What effect will this have on all nominal interest rates?

Reference no: EM131877560

Questions Cloud

Discuss the reason why capital investment projects : Discuss the reason why capital investment projects should be evaluated for risk in the present, and how risk might be involved in future planning
Distinguish between cash receipts and cash disbursements : Class, cashflow is the difference between cash receipts and cash disbursements for a given accounting period. It is critical for every administrator to ensure.
Production of catalytic converters : Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarter's production of catalytic converters.
What items of input must the user enter : What items of input must the user enter? Once the input has been entered, how will the program determine the average? What output will the program display?
Consumer confidence survey : One of the indices that economists use to gauge consumer expectations is the consumer confidence survey. This is an indirect measure of consumer expectations
Define what might be some good strategies : HP has found themselves with a short term part shortage situation that is affecting their ability to cover customer demand of a key mid-range computer model.
What is the url of the web site : What is the URL of the Web site? Is this page appealing or unappealing? List three reasons for your answer.
Has the recent liquidity crisis impacted large banks : Has the recent liquidity crisis impacted large banks the same as small banks? Explain any difference.
Explain the two primary functions of bank capital : Explain the two primary functions of bank capital, and how bank capital might be differently perceived by regulators, depositors, and shareholders/managers

Reviews

Write a Review

Finance Basics Questions & Answers

  What insight does this give you into the company financial

Determine the current assets to total assets ratio for the construction company in Figures 6-1 and 6-2. What insight does this give you into the company's financial operations?

  Find what is default risk premium on the corporate bond

The maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?

  Identify the best project by the criteria of long term value

Compare the results of the three methods by quality of information for decision making. Using what you have learned about the three methods, identify the best project by the criteria of long term increase in value.

  If 4-years of college is expected to cost 150000 18 years

if four years of college is expected to cost 150000 18 years from now how much must be deposited now into an account

  What are your favorite brand characters

What are your favorite brand characters? Do you think they contribute to brand equity in any way? How? Can you relate their effects to the customer-based brand equity model?

  Is your broker right

You decide to follow your finance professor's advice and reduce your exposure to Hannah. Now Hannah represents 15% of your risky portfolio, with the rest in the Natasha fund. Is this the correct amount of Hannah stock to hold?

  Determining the annual payments

Anderson Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding machine for $140, 000. Kersey will borrow money from a bank.

  What is the maximum amount of dividends per share

From a legal perspective, what is the maximum amount of dividends per share the firm could pay? Is this realistic?

  Covered interest arbitrage

Currently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The interest rate is 8.0% per year in the U.S. and 5.8% per year in the U.K.

  What is maximum amount the firm should pay for investment

An investment is expected to generate $1,000,000 each year for 4 years. If the firm's cost of funds is 10%, what is the maximum amount the firm should pay for the investment?

  Dependent variable and two potential explanatory variables

investigate the relationship between a dependent variable Y and two potential explanatory variables X1 and X2.

  Decreasing interest coverage ratio

With a steady debt ratio and a decreasing interest coverage ratio, the company appears to be less able to meet its debt obligations

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