Relation between nominal and real interest rate, Macroeconomics

Assignment Help:

Q. Relation between nominal and real interest rate?

Relation between nominal interest rate, real interest rate and inflation 

If we signify the nominal interest rate by R, real rate by r and expected inflation by pe then real interest rate is defined by: 

r = R-pe               or         R=r+pe


Related Discussions:- Relation between nominal and real interest rate

Net present worth for this new computer system, Kermit is considering purch...

Kermit is considering purchasing a new computer system. The purchase price is $106,430. Kermit will borrow one-fourth of the purchase price from a bank at 10 percent per year compo

Determine the main target of monetary policy, Determine the main target of ...

Determine the main target of monetary policy Since 1997 'official' main target of monetary policy has been to 'hit' inflation rate target set by government. Though since the o

Production possibilities curve, Using a production possibilities curve, an ...

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located. a. at the top corner of the

Institutional mechanisms for promotion of fdi, INSTITUTIONAL MECHANISMS FO...

INSTITUTIONAL MECHANISMS FOR  PROMOTION OF FDI: There is  increasing recognition that  understanding  'the forces of economic globalisation requires taking  a look  at  foreig

Advantages of leaving resource allocation, What are the advantages of leavi...

What are the advantages of leaving resource allocation to price allocation? Ans) The 5 benefits are Neutral, Flexible, Freedom of choice, No administrative cost and lastly Dimin

Develop the mrp planning schedule, Product A is an end item and is made fro...

Product A is an end item and is made from two units of B and four of C. B is made of three units of D and two of E. C is made of two units of F and two of E. A has a lead time o

Set up a diagram.., (a) Use this information to set up a diagram showing th...

(a) Use this information to set up a diagram showing the firm''s total revenue and total cost schedules. In this diagram, show the points at which the firm is maximizing profits.

Example of macroeconomics, Could you please tell me an example and describe...

Could you please tell me an example and describe example of macroeconomics?

Diversify the business of firm a, The managers of Firm A recommend that Fir...

The managers of Firm A recommend that Firm A purchase Firm B because the purchase will diversify the business of Firm A. Diversification of risks is a desirable strategy for indivi

Write Your Message!

Captcha
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