The...... rate is equal to the ..... rate.....the......rate a) real interest / nominal interest / minus / inflation b) nominal interest / real interest / minus / inflation c) real interest / nominal interest / plus / inflation d) nominal interest / real interest / plus / inflation e) inflation / nominal interest / minus / real interest

The...... rate is equal to the ..... rate.....the......rate a) real interest / nominal interest / minus / inflation b) nominal interest / real interest / minus / inflation c) real interest / nominal interest / plus / inflation d) nominal interest / real interest / plus / inflation e) inflation / nominal interest / minus / real interest

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Unemployment And Inflation

Section: Chapter Questions

Problem 3.7P

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Similar questions

The.... rate is equa to the ...... rate ...... the ....... rate a) real interest / nominal interest / minus / inflation b) nominal interest / real interest / minus / inflation c) real interest / nominal interest / plus / inflation d) nominal interest / real interest / plus / inflation e) inflation / nominal interest / minus / real interest
Find the real interest rate prevailing if inflation is 2% and Nominal Interest rate is 3 times the inflation rate
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1.As the inflation rate increases, the present value of a fixed payment receive in the future a) decreases b) stays the same c) increases 2. As the opportunity cost of your funds increases, the future value of a payment received today a) decreases b) stays the same c) increases
Example: Interest rate adjusted for inflation if the market interest rate is 10% and the overall inflation rate is 5%.
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Suppose Cho is a cinephile and buys only movie tickets. Cho deposits $3,000 in a bank account that pays an annual nominal interest rate of 10%. Assume this interest rate is fixed—that is, it won't change over time. At the time of her deposit, a movie ticket is priced at $15.00. Initially, the purchasing power of Cho's $3,000 deposit is 200 movie tickets. When the rate of inflation is equal to the interest rate on Cho's deposit, the purchasing power of her deposit __________over the course of the year. Select one of the following: A. Rises B. Remains the Same C. Falls
If inflation rate is 1% and nominal interest rate is 2.1% What will be the real interest rate
If 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?