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Determine about the Expected inflation
Note that it is changes in prices during 2008 which matter for the high real interest rate (the time period when your deposit is earning interest). This means that you can never know how high the real rate is actually going to be when you start to save on 1st January 2008, even if you know the nominal interest rate exactly. Crucial to the determination of the real rate is the expected inflation- the inflation expected in the year you save.
Consider the following prisoners' dilemma game. C D C 4,4 0,6 D 6,0 1,1
Q. Important points about the classic model? The most important points about the classic model are as following: Monetary and fiscal policy can't affect the GDP or unem
Many developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis
How credit is created or the creation of credit
Government revenue, government spending and net exports G, NT and NX are exogenous variables in the classical model In the classical model (and
is there a graph for says law?
Rational Expectations School Expectations on the future values of economic variables play an important role in macroeconomic analysis and economic analysis in general. Because
The Concept of Growth and Growth Rate is explained below: Economic growth is rise in an economy’s level of the production of commodities, output or income. We can talk about th
In the keynesian cross model, assume the consuption function is given by C=200=.75(Y-T) and planned investment=100, government purchases and taxes are each of them 100. a) Draw a g
Q. What do you mean by Exchange rate? Exchange rate is defined as the price of one unit of currency in terms of another currency. If one euro costs 1.5 USD then 1 USD costs 1/1
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