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

Q: The real interest rate is approximately equal to A. the growth in real GDP. B. the nominal interest…

A: since you have asked multiple questions and according to our policy we can only solve one question…

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: Suppose that Lisa lends Alex $1,000, which Alex must repay after one year with an interest payment…

A: The term ‘inflation’ implies constant upward rise in the average prices of services and commodities…

Q: If the nominal interest rate is 10 percent and the inflation rate is 4 percent, then the real…

A: Nominal interest rate is the current rate of interest.Real interest rate is the change in interest…

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: The nominal interest rate will be less than the real interest rate when   A. the rate of inflation…

A: The correct option is (c).

Q: The...... rate is equal to the ..... rate.....the......rate a) real interest / nominal interest /…

A: The question is based on the Fisher equation which states the relationship between real interest…

Q: You are given a loan with a nominal interest rate of 5%. You must pay back this loan one year from…

A: The nominal interest rate the interest rate that you earn or pay on money that you lend or borrow;…

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: 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: Find the inflation rate in the economy if the real interest rate is 4% and Nominal Interest rate is…

A: # in an economy we can easily find the prevailing inflation rate by using the fishers equation which…

Q: The apparent interest rate is 9.18% and the real interest rate is 6%. What is the inflation rate?

A: Interest is the cost of capital. We can use interest in the context of either borrowed funds,…

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: What would be the inflation rate in Alaska if Nominal interest rate is 2% and real interest rate is…

A: The data presented in the question above is:- We are given with the information of the economy of…

Q: Find the real interest rate prevailing if inflation is 2% and Nominal Interest rate is 3 times the…

A: The information given to us is:- Inflation = 2% Nominal interest rate = 3* inflation rate = 3*2 = 6%…

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: The government has released the latest retail price index which suggests inflation was 1.62%. A…

A: As measured by the consumer price index (CPI), the change in the price of a basket of goods and…

Q: 2010 2020 inal Salary ED 150,000 200,000 1.00 1.00 uired: Calculate real salary for 2010 Calculate…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you…

Q: If I lend my father $500 at a Nominal interest rate of 2%, and the inflation rate is 7%, the Real…

A: In a market, an Inflation rate has a significant impact on the real money held by individuals as the…

Q: Consider a simple economy that produces only three products: hot dogs, torches and golf balls. Use…

A: since you have asked multiple questions and according to our policy we can only solve the first part…

Q: You are given the following information about the economy: the nominal interest rate = 10 percent,…

A: Given information: The nominal interest rate is 10% The real rate of interest is 3%

Q: If nominal interest rate is 6% and inflation is 8%, what is the real interest rate?

A: Given data: Nominal Interest rate = 6% Inflation = 8%

Q: Q.1.9 If the CPI was 106 in 2013 and 116 in 2014, the inflation rate in 2014 was: (a) 106%;

A: Since you have posted multiple independent questions in the same request, we will solve the first…

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: Which of the following is NOT a step in calculating the inflation rate from one period to the next?…

A: Inflation refers to general rise in the prices in an economy. The inflation rate is defined as the…

Q: If inflation rate is 1% and nominal interest rate is 2.1%  What will be the real interest rate

A: The given information is as follows:- Inflation rate in the economy = 1% This shows the general rise…

Q: Real interest rate is equal to Nominal Interest rate when inflation is 2% True/False

A: # nominal interest rate doesn't take into account the effect of inflation anthers it cannot be used…

Q: Ek 3 UK’s inflation has hit a 40 year high (CPI is 9.1% in June 2022). Evaluate the use of interest…

A: A widespread increase in the prices of goods and services in an economy indicates inflation, which…

Q: The average price of tuition and fees at public 4-year colleges and universities increased from…

A: According to the question, that average change in tuition and fee became $7100 in 2010 from $1780 in…

Q: If the nominal interest rate is 10 percent and the real interest rate is 5 percent, the inflation…

A: Inflation rate: It is the rate of increase in the prices in a particular time period.

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: real interest rate

A: Formula for Real Interest Rate: Real Interest Rate = Nominal Interest Rate - Inflation Rate

Q: The value of a price index in the base year is   0 100 200 The inflation rate The average cost of…

A: the price index refers to a normalized average of price relatives for a given class of products or…

Q: If inflation is 1% and Nominal Interest rate is 3.1%  Find the value of real interest rate

A: The information being given to us is as follows:- Inflation = 1% Nominal interest rate = 3.1% We…

Q: • If the nominal interest rate is 6% and the inflation rate is 3% then the real interest rate is: •…

A: Inflation rate is the increase in prices of goods and services. It helps in identifying the amount…

Q: Consider a simple economy that produces only three products: hot dogs, torches and golf balls. Use…

A: CPI stands for consumer price index represent the cost of living which is ratio of change in cost of…

Q: If the inflation rate is 8 percent and the real interest rate is 6 percent, the nominal interest…

A: Answer: A (14 percent) Explanation: Nominal interest rate = Real interest rate + Inflation rate…

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: In 2018, the real interest rate was 6% and inflation was 1.2% Calculate nominal interest rate

A: The information being given is:- Real interest rate = 6%  Inflation rate = 1.2% This is the data for…

Q: An investment offers a 12% total return over the coming year. Bill Morneau thinks the total real…

A: Inflation is the rate of increase in prices over a given period of time.  Here, we calculate the…

Q: In the market the real interest rate is 3% and nominal interest rate is 6.6%  Find inflation rate.

A: The data presented in the question is:- Real interest rate = 3%  Nominal interest rate = 6.6%…

Q: The price index in year 2 is 110 and the price index in year 3 is 115. The rate of inflation between…

A: A consumer price index is a price index, the price of a weighted average market basket of consumer…