What real rate of interest can earn on the saving certificat

Assignment Help Microeconomics

Reference no: EM13180177

1. Employment hardship - it has been implied that unemployment rate should be replaced with an "employment hardship index" that tries to measure the % of people who have hardship because of their labor force status.

- what kinds of persons who are currently not counted as unemployed might fit into this category?

- what kinds of people who are currently not counted as unemployed would not suffer hardship? Discuss.

2. Real and nominal interests:

A local bank gives the following:

a.) 12 month savings certificate - $1000 -- %1 interest

b.) 60 month interest on car loan -- 4.29%

Compare these nominal interest rates with the current rate of inflation as measured by the most recently announced rate of change in the consumer price index. (this statistic is found here: www.bls.gov ... Bureau of Labor Statistics).

If the current rate of inflation were to continue unchanged, what real rate of interest would you earn on the saving certificate? What real rate of interest would you pay on the loan?

Reference no: EM13180177

Questions Cloud

What is the economic cost of tim attending the concert : The ticket cost Dave $600. To attend the concert Tim will have to take 3 days off from work where his daily compensation is $250. In addition Tim expects travel expenses to be $175 and the cost of a hotel for 2 days to be $275. What is the economi..

How many trades must be made to break even : Use the Contribution margin ratio CVP formula to compute National breakeven in dollars. If the average trade leads to $1000 in revenue for National how many trades must be made to break even?

Which set of vertices represents a square : which set of vertices represents a square?

What is the rate of the boat in still water : A motorboat travels 469km in 7 hours going upstream. It travels 493km going downstream in the same amount of time. What is the rate of the boat in still water and what is the rate of the current?

What real rate of interest can earn on the saving certificat : Compare these nominal interest rates with the current rate of inflation as measured by the most recently announced rate of change in the consumer price indexIf the current rate of inflation were to continue unchanged, what real rate of interest wo..

Find level of production for which the average cost is equal : Find the level of production for which the average cost is equal to the marginal cost.

Advise the management committee of barmunda : What will be the implications for Barmunda Pty Ltd if it is considered to be a reporting entity and advise the Management Committee of Barmunda Pty Ltd

Find the shaded area : semicircles are placed on the sides of an equilateral triangle with sides 10.1 feet. find the shaded area. with this problem the whole thing is shaded.

What does the slope of this line represent : Imagine that a line on a Cartesian graph is approximately the distance y in feet a person walks in x hours. What does the slope of this line represent? How is this graph useful? Provide another example for your colleagues to explain.

User Account

All Pages