In the graph you've just explored, by how much does the quantity of money demanded change if the interest rate rises from 5 percent to 6 percent? A. $9 trillion B. $1 trillion C. $10 trillion
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In the graph you've just explored, by how much does the quantity of money
A. $9 trillion
B. $1 trillion
C. $10 trillion
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- Sally worked hard all year and put her savings into a mutual fund that paid a nominal interest rate of 4 percent a year. During the year, the CPI increased from 185 to 190. What was the real interest rate that Sally earned? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Abhijit deposits $100 in a bank account that pays an annual interest rate of 5 percent. A year later, Abhijit withdraws his $105. If inflation was 7 percent during the year the money was deposited, then Abhijit’s purchasing power has increased by 2 percent. Select one: True FalseReal interest rate is equal to Nominal Interest rate when inflation is 2% True/False
- Consider three consumer goods 100 units of Good A, 100 unit base year, Good A sold at a price of $1, Good B sold at a price of $1, and G Good A sold at a price of $3, Good B sold at a price of $5. The Consumer Pr is A B C D 100 300 600 1000 Submit Answer G Take a Break LIf the rate of inflation is 5.7 %, what nominal interest rate is necessary for you to earn a 2.2 % real interest rate on yourinvestment?The nominal interest rate is: A not adjusted by inflation. B less than the real rate of interest when there is inflation. C inflation. adjusted D the real rate of interest when there is inflation.
- On January 1, 2012, Albert invested $8,000 at 5 percent interest per year for three years. The CPI (times 100) on January 1, 2012, stood at 100. On January 1, 2013, the CPI was 108 on January 1, 2014, it was 115; and on January 1, 2015, the day Albert’s investment matured, the CPI was 117. Find the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Assume that interest earnings are reinvested each year and themselves earn interest.Hint: Calculate inflation and real interest for each year and then calculate it for the three years as a whole.Instructions: Enter your responses rounded to one decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Year Real rate of interest 2012 % 2013 % 2014 % Total real rate of return: %.The effective interest rate on a mortgage with monthly payments is 9.38%. What is the monthly interest rate on the mortgage? What is the nominal interest rate?The withdrawal of income from circular flow of income example saving is known as _______
- In 1972 the maximum earnings of a worker subject to Social Security tax (SST) was $9,000. The maximum earnings subject to SST in 2016 is $118,500. Whatcompound annual increase has been experienced over this 44-year period of time? How does it compare with a 3% annual increase in the consumer price index over the same period of time?Is rate of retur the same as interest rate?Which of the following describes the interest rate on an investment after calculating the impact of inflation?O NominalO RealO FinancialO Profit