Calculate nominal interest rate in the economy when real interest rate is 7% and inflation rate is 3.8% (B) Also tell what happens when inflation becomes zero.

Q: In Brazil, the reference base period for the CPI is 2000. By 2016, prices had risen by 187 percent…

A: In 2000, Brazil base year so in 2000, CPI = 100

Q: Calculate inflation if real interest rate is 2% and Nominal Interest rate is 3.3%

A: The information being given is:- Real interest rate = 2% Nominal interest rate = 3.3% Inflation = ?

Q: In an economy inflation is 3% and the nominal interest rate is 3%  Calculate the real interest rate

A: The addition of inflation and real interest rate gives us the value of nominal interest rate Real…

Q: In which situation is the real interest rate highest? In which situation is the real interest rate…

A: Nominal interest rate refers to the interest rate before taking inflation into account. A real…

Q: Calculate the nominal interest rate when real interest rate is 5% and inflation is 2%

A: # According to fisher's equation, we know that the real interest rate is the difference between…

Q: Explain the meanings of nominal interest rate and realinterest rate. How are they related?

A: The interest rate is the amount of payment that is charged by a lender on a borrower for the use of…

Q: There is a persistent fear that there will be a high level of deflation. Many economists warn that…

A:

Q: Find the value of inflation if real interest rate is 0 and nominal interest rate is 4.6%

A: We are given that:- Real interest rate = 0% Nominal interest rate = 4.6% Note- Real interest rate is…

Q: In an economy the real interest rate and inflation is 3% and 1.8% respectively  Find nominal…

A: The information being given is:- Real interest rate = 3% Inflation rate = 1.8% We have to calculate…

Q: Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money…

A: Answer: Correct option: (a) Explanation: Inflation: it refers to the rise in the prices of goods and…

Q: 8. The table below shows some data I got from FRED on the CPI and PCE deflator. The PCE deflator is…

A: The formula for calculating annualized inflation: i =initial value of indexfinal value of index1n-1…

Q: If the real interest rate is 8% and inflation is 4%  Calculate the nominal interest rate.

A: Below is the following information given in the question: *Real Interest Rate = 8% *Inflation = 4%

Q: alculate the real interest rate if Nominal Interest rate is 3% and inflation rate is 1%

A: # We know that the real interest rate is given by the difference between the nominal interest rate…

Q: In which situation would you rather be a borrower? the nominal interest rate is 10%, the inflation…

A: The inflation in an economy is defined as the average rise in the level of prices in the economy.…

Q: At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is…

A: CPI is measured using fixed basket of goods

Q: If inflation is 1% and nominal interest rate is 9%  Calculate real interest rate

A: It's given in the question that:- Inflation = 1%  Nominal interest rate = 9% Thus we need to…

Q: Inflation rate is half the nominal interest rate prevailing in the market.  The Nominal Interest…

A: The information being given is:- Nominal interest rate = 3.6%  Also the inflation rate is half the…

Q: Calculate inflation when nominal interest rate is 7% and real interest rate is 5%

A: The given information is as:- Nominal interest rate = 7% Real interest rate = 5% We need to…

Q: If in the banking sector the nominal interest rate is 3% and inflation rate is 1.7%  Calculate what…

A: The information being given is:- Nominal interest rate in banking rate = 3% Inflation rate = 1.7% We…

Q: In an economy, the inflation rate and real interest rate are 1.8% and 3%  Find nominal interest…

A: Answer in step 2

Q: Calculate the nominal interest rate when real interest rate is 6% and inflation rate is 0%

A: # Nominal interest rate less inflation rate gives us the real interest rate prevailing in the…

Q: Calculate real interest rate if Nominal Interest rate is 8.2% and inflation is 6.1%

A: According to the above given question, the values given are:- Nominal interest rate = 8.2%…

Q: Consider the following basket of student essentials:                                  2019…

A: Consumer price index (CPI) refers tot eh calculation of weighted average of the consumption basket…

Q: If the real rate of interest is 3% and the expected rate of inflation is 6%m calculate the nominal…

A: The interest rate generally refers to the amount paid to the lender in return for the borrowed money…

Q: What is the value of inflation when real interest rate is 6% and the nominal interest rate is also…

A: # The difference between Nominal interest rate and real interest rate gives us the value of…

Q: Hi using the information in the picture below I need help answering this question.   Suppose the…

A:

Q: If inflation is 0% and the real interest rate is 3.3% Calculate nominal interest rate

A: The data presented in the question above is:- Inflation = 0% Real interest rate = 3.3% We need to…

Q: Calculate inflation if real interest rate is 3% and the Nominal Interest rate is 5.3%

A: The given information is as follows:- Real interest rate = 3% Nominal interest rate = 5.3% We know…

Q: The BBS reported the following CPI data: June 2016- 201.9 June 2017- 207.2 June 2018- 217.4 a)…

A: Dear student, You have asked multiple sub questions in a single post. I am answering first three sub…

Q: Calculate the value of nominal interest rate of inflation is 0 and real interest rate is 6%

A: The information given to us is that  Real interest rate in the economy Is 6% Inflation is 0% We have…

Q: If nominal interest rate is 8.5% and the inflation rate is 3.6%  Calculate the real interest rate

A: The given information is as follows:- Nominal interest rate = 8.5%  Inflation = 3.6%

Q: Year Price of pens ($) Quantity of pens (in units) Price of staplers Quantity of staplers (in units)…

A: The consumer price index (CPI) is the instrument to quantify expansion. It is utilized to appraise…

Q: What is the inflation rate in 2019? Has it increased or decreased since 2018 and by how much?  If…

A: GDP deflator reflects what's happening to the overall level of prices in the economy.

Q: Calculate the value of inflation if real interest rate is 6.5% and the nominal interest rate is 8.2%

A: The information given to us is as follows:- Real interest rate = 6.5%  Nominal interest rate = 8.2%…

Q: If the nominal interest rate is 5 percent and the inflation rate is 2 percent, what is the real…

A: Nominal interest rate is the rate of interest before the adjustments of inflation. given: Nominal…

Q: Calculate inflation when nominal interest rate is 8% and the real interest rate is 2% Help!

A: # The formula for real interest in the economy is explained by the fisher's equation as:- Real…

Q: In an economy the nominal interest rate is 6% and the inflation is 4%. Calculate real interest rate

A: Following are the given values: Nominal interest rate = 6% Inflation  rate = 4%

Q: If Inflation is 2% and nominal interest rate is 4% Calculate real interest rate

A: The data presented in the question is :- Inflation rate = 2%  Nominal interest rate = 4% We need to…

Q: In 2019, the inflation was 4.1% and the nominal interest rate was 6.2%  Calculate the real interest…

A: We are given with the values of inflation rate and nominal interest rate in the year of 2019…

Q: 4. In which of these situations is the A) The nominal interest rate is 3% and the inflation rate is…

A: The relationship between real interest rate, inflation rate and nominal interest rate is : Nominal…

Q: In the economy, Nominal Interest rate is 2% and real interest rate is 1.5% Calculate inflation

A: We are given that:- Nominal interest rate = 2% Real interest rate = 1.5% We need to calculate…

Q: What does it mean when the CPI is higher this year than last? Select one: a. The rate of inflation…

A: CPI or consumer price index is given by the formula: CPI= ( Cost of the market basket in current…

Q: Calculate the real interest rate when nominal interest rate is 7% and inflation rate is 2%

A: # Fishers equation explains the relationship bet ween the real int rate , nominal int rate and…

Q: Calculate the CPI of 2009. Calculate the inflation rate of 2009. If your salary in 2008 and 2009 was…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Measuring Inflation 7. Based on surveys conducted by the BLS, the CPI basket assigns a weight of…

A: Inflation is a persistent rise in the general price level of goods and services in the economy. The…