What is the real interest rate

Assignment Help Business Economics

Reference no: EM13860613

If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.

Reference no: EM13860613

Questions Cloud

Plots the supply curve for the sellers : This graph plots the supply curve for the sellers (orange squares). You need to add the demand curve. Plot the buyer values by dragging points onto the graph (blue circles). Tool tip: For information on using the graph tool, click the Help button.

Bell curve type analysis is inappropriate : This will be a real challenge, but it should be an interesting challenge. Much of the way we measure risk relies on probability distribution. For many things in life, and business, this is perfectly valid, but for others it is not. Can you come up wi..

Compute the inventory amount : Compute the inventory amount at December 31, 2013, 2014, and 2015 using the dollar-value LIFO inventory method for each year. (Round all amounts to the nearest dollar, 10 points each)

What is an innovation economy : What is an innovation economy? How does it differ from a traditional manufacturing economy?

What is the real interest rate : If the nominal interest rate is 4 percent and expected inflation is 1 percent, what is the real interest rate? Suppose instead that the nominal interest rate is 80 percent and the expected inflation rate is 40 percent.

Reflect on change in us manufacturing over last half century : Reflect on the changes in U.S. manufacturing over the last half century. Why did the United States lose so many jobs? What impact did that job loss have on the U.S. economy and on the economies of countries like China and Mexico that have been the re..

What is the equivalent value of series : Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?

Effectively increase the price of residential heating fuel : As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) a tax that would effectively increase the p..

Grocery store purchases are included in gdp : Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Only Joe’s grocery store purchases are included in GDP. Only Joe’s and Jim’s grocery store purchases are included in GDP.

User Account

All Pages