2. Suppose that an economy starts with a net foreign asset to GDP ratio (NFA/Y) equal to -30%. After one year, the rel interest rate (difference between the nominal interest rate and the inflation rate) has been -10%. What will the NFA/Y ratio become after this year due to this effect? Give your answer with two decimal places. THE ABOVE INFORMATION WAS ALL THAT WAS GIVEN. Please show work and highlight ansv Ner

2. Suppose that an economy starts with a net foreign asset to GDP ratio (NFA/Y) equal to -30%. After one year, the rel interest rate (difference between the nominal interest rate and the inflation rate) has been -10%. What will the NFA/Y ratio become after this year due to this effect? Give your answer with two decimal places. THE ABOVE INFORMATION WAS ALL THAT WAS GIVEN. Please show work and highlight ansv Ner

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...

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