# In an economy, the nominal interest rate is 9% and inflation is 7%. Raj is thinking to giving some money as loan to his friend. Would it be beneficial for Raj to lend at this very moment.

Q: What is the CPI in 2020?  What is the inflation rate between 2019 and 2020?

A: The measure that in turn tend to depict thechanges in the level of price of a consumer's basket of…

Q: 19. Write out the formula for the relationship between the rate of change of real GDP, the rate of…

A: Nominal GDP is the number of commodities that are produced in a country (nation) in a particular…

Q: The average hourly wage in 1975 was $6.50, and $17 in 2002. CPI stood at 42 in 1975 and the CPI base…

A: CPI 2002 = 100 as base year Wage in 1975 = $6.50 Wage in 2002 = $17

Q: Calculate nominal interest rate in the economy when real interest rate is 7% and inflation rate is…

A: # in an economy given the nominal interest rate, and inflation rate the real interest is given to be…

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: norminal GDP                      real GDP 2000      13000                                   12900…

A: Formula:  GDP Deflator = (Nominal GDP / Real GDP) *100. Inflation rate = {(Present year GDP…

Q: Which of the following are signs of inflation? A.The price of a house in a high-demand market…

A: Inflation refers to a decline in the purchasing power of the currency of a country over given period…

Q: If the nominal GDP is $20 trillion, what is the real GDP if the inflation is 3%

A: Real GDP is also called inflation adjusted GDP.

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: What is the effect of the inflation to the country with example. ?

A: The inflation is the macroeconomics term which shows the persistent increment in the price level in…

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: Explain how an increase in your nominal income and a decrease in your real income might occur…

A: The inflation unadjusted just money value of income of the consumer is known as the nominal income.…

Q: how to calculate inflation rate of 10 consecutive years of a country with the gdp growth rate?

A: Inflation is the process through which the cost of goods and services rises over time, lowering the…

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: 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: Who would be the least affected by inflation? (Benefit from Inflation) a man with a fixed interest…

A: Inflation is the general increase in price level which lowers the purchasing power of all the people…

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: culate the inflation rate in sudan where the CPI in 2021 was 100 and CPI in 2021 is 150?

A: Inflation is the rate at which the value of a currency is falling and, consequently, the general…

Q: What is inflation? How can we measure it? What are the differences between inflation based on CPI…

A: inflation is a term that refers to the increase in the general price level of most services and…

Q: Describe the difference between nominal interest rate and real interest rate?

A: In economics, interest rate is classified as nominal interest rate and real interest due to the…

Q: Bureau of Economic Analysis data show that with base year 2005​ = 100, the GDP price index was 109.7…

A: Gross Domestic Price:It is the primary indicator which shows the health of an economy. It depicts…

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: Why does the GDP deflator give a different rate of inflation than the CPI ?

A: In an economy, inflation is measured using different economic tools that are CPI, WPI, and GDP…

Q: Name 2 reasons why the CPI underestimates the true Inflation Rate?

A: reasons why the CPI underestimates the true Inflation Rate show below .. 1 )Substitution biàs 2)…

Q: Suppose a person works hard at a job after graduation and after her first year, her effort is…

A: A consumer like the person in the question is never bothered about the money in numerical terms…

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: try has the following statistics for 5 years: Year CPI 2012 187.5 2013 198.3 2014 150.2…

A: Year CPI 2012 187.5 2013 198.3 2014 150.2 2015 138.4 2016 126.5

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 consumer price index was 70 in one year and 100 in the next year then the rate of inflation…

A: A price index is a weighted normal of the costs of a chose container of labor and products…

Q: In an hypothetical Economy, the nominal interest rate is 4% and the inflation is 2.8% What would be…

A: The information being given is about some hypothetical economy where:- Nominal interest rate = 4%…

Q: how are borrowers and lenders affected when the nominal rate is 9%, the inflation premiums on loans…

A: The nominal interest rate refers to the interest rate charged on loans without taking inflation into…

Q: The value of the CPI increases from 151 in year 1 to 179 in year 2. This means that a good costing…

A: Given Information: Value of CPI in year 1 = 151 Value of CPI in year 2 = 179 Cost of good in year 1…

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: What is the correlation between CPI and GDP? How does it affect each in a positive way? What is…

A: Relating the Consumer Price Index to the GDP price index and the GDP implicit price deflator U.S.…

Q: The Nominal Interest rate and inflation rate in an economy is same.  What will be the real interest…

A: The interest rate which is irrespective of inflation is known as nominal interest rate. And the…

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: 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: 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: 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: Use the information from the preceding table to fill in the following table. Year Nominal GDP   Real…

A: Nominal GDP estimates the value of goods and services at prices prevailing in the current year. Real…

Q: What is the common measure of inflation? a. Producer Price Index. b. GDP Deflator. c. Consumer Price…

A: Inflation:- Inflation refers to decrease in purchasing powers to currency due to increase in price…

Q: Use the information in the table for Economy X to answer the following question. Year CPI 2016 723.1…

A: Inflation is calculated as follows; Subtracting  the past date CPI from the current date CPI and by…