Refer to the hypothetical data in the table to answer the three questions. What was the real interest rate in 2017? Year Nominal interest rate Real interest rate Inflation rate 2017 3% — 5% 2018 5% 5% — 2019 — 3% 1% % What was the inflation rate in 2018? % What was the nominal interest rate in 2019?

Refer to the hypothetical data in the table to answer the three questions. What was the real interest rate in 2017? Year Nominal interest rate Real interest rate Inflation rate 2017 3% — 5% 2018 5% 5% — 2019 — 3% 1% % What was the inflation rate in 2018? % What was the nominal interest rate in 2019?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 12QP

See similar textbooks

Year	Nominal interest rate	Real interest rate	Inflation rate
2017	3%	—	5%
2018	5%	5%	—
2019	—	3%	1%

Similar questions

The index number representing the price level changes from 110 to 115 in one year and then from 115 to 120 the next year. Since the index number increases by five each year, is five inflation rate each year? Is the inflation rate the same each year? Explain your answer.
Describe a situation, either a government policy situation, an economic problem, or a private sector situation, where using the CPI to convert from nominal to real would be more appropriate man using the GDP deflate:
Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time payment of 20,000. However, if the inflation rate is 6 per year, how much buying power will that 20,000 have when measured in todays dollars? Hint: Start by calculating the rise in the price level over the 16 years.
Name several forms of indexing in the private and public sector.
How do you convert a series of nominal economic data over time to real terms?
What are the different policy tools for dealing with cyclical unemployment?