How did the u.s. real interest rate behave

Assignment Help Econometrics
Reference no: EM131139255

The chapter suggested that because large increases in oil prices transfer income to countries that cannot rapidly increase their consumption or investment and therefore must save their windfalls, world real interest rates fall in the short run. Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?

Reference no: EM131139255

Questions Cloud

Difference between the interest rates on one-year lira : What would have been the maximum possible difference between the interest rates on six-month lira and DM deposits? On three-month deposits? Do the answers surprise you? Give an intuitive explanation.
Explain how corporate leaders may make improper assumptions : Based on your research, assess how corporate leaders may make improper assumptions related to accounting information systems and the related information.
Which costing method should be recommended and why : Assume that the law firm provides litigation, estate planning and corporate legal services with multiple levels of billing rates. Which costing method should be recommended and why?
Prepare an income statement for november : Prepare an income statement for November using the traditional format with costs organized by function. Why might it be misleading to show the fixed costs on a per unit basis?
How did the u.s. real interest rate behave : Put together data on the U.S. real interest rate for 1970-1976, a period that includes the first OPEC oil shock. How did the U.S. real interest rate behave?
What do you think is the rationale for these regulations : Similarly, Fed reserve requirements are imposed on any loan from a U.S. bank's foreign branch to a U.S. resident, or on any asset purchase by the branch bank from its U.S. parent. What do you think is the rationale for these regulations?
Do you agree with swoboda''s interpretation : (This argument is made in The Euro-Dollar Market: An Interpretation, Princeton Essays in International Finance 64, International Finance Section, Department of Economics, Princeton University, February 1968.) Do you agree with Swoboda's interpreta..
Can you suggest a connection between these two developments : Over the 1980s, the share of U.S. banks in London banking activity declined. Can you suggest a connection between these two developments?
Ratio of international asset trade to gnp for home : How do you think this would affect the ratio of international asset trade to GNP for Home and Foreign?

Reviews

Write a Review

Econometrics Questions & Answers

  Determine what is the expected value of the delay

The internal study could be started immediately, and then the decision on the consultant could be made in three months. If this option is selected, the internal study will reliably indicate the outcome. If the consultant were hired, it would add t..

  Describe the process through which money is created

Explain the process through which money is constructed. Describe how current events less than ninety days have affected this process and the effect current events will have on the economy as a whole.

  Find optimal number of shirts produced to minimize cost

The cost function per t-shirt is identified to be the following: y=ln(X+1). Fixed costs associated are a step function based on area needed. For each 1000 shirts, the cost associated with storage space is $1000 .

  Calculate the arc elasticity of demand

1. calculate the arc elasticity of demand 2. construct the demand equation. use midpoint price and quantity (p=210, q=7200), and the elasticity you have just calculated. Assume the demand equation takes the form Q= a+bP. Also recall that E=b(P/Q)

  How many drivers cross the bridge

If the city wishes to raise as much revenue as possible from the tolls, where will the city decide to charge a toll: in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion? Explain.

  Determine what is the yield-return on the bond

A corporate bond has a face value of $10,000 with a bond rate of 10%. The interest of the bond will be paid quarterly. The bond will mature in 10 years. If the bond is sold at $8,500 on the market, what is the yield (return) on the bond

  What is the slope of budget line from trading with friday

Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman

  What is the opportunity cost of increasing annual output

Obviously, given their limited resources and available technology, as they use more of their resources for corn production, there are fewer resources available for breeding poultry. Maximum annual output options Quantity of Corn(pounds) Quantity o..

  Hat is your optimal price and quantity given

Your marginal cost for producing a Hair Grow pill is $1. What is the profit-maximizing price and quantity? What is your profit? Suppose your production facility can only produce 1,000,000 pills. What is your optimal price and quantity given the ..

  Determine what is the optimal two-part tariff

Consider the market for a product with two types of potential users: those in proportion f have inverse demand schedule P = 5 - 0.5 Q, while the remaining 1 - f have inverse demand P = 10 - Q. Normalize the total number of consumers to 1, and let..

  Calculate tom''s opportunity cost of producing a ball

Tom can produce 40 balls per hour or 4 bats per hour. Tessa can produce 80 balls per hour or 4 bats per hour. a. calculate Tom's opportunity cost of producing a ball. b. calculate Tessa's opportunity cost of producing a ball.

  Derive the factor demands given prices of factors

Suppose that the Ofce can hire skilled labor h that can ll the forms without using computers. The output of the Ofce that hires h skilled labor, l unskilled labor and k computers is equal to y = l + 10 min (h; k)  Solve the long-run cost minimizat..

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