Q: What is the relationship between income and consumption?
A: The income is the money wage earned by the individual for providing the service of the labor in the…
Q: Amit is using his money to buy assets like house , commercial land and machines . Write what is he…
A: Disposable Income: Disposable income is the income that remains after subtracting the taxes and this…
Q: Grant agreed to lend Kay $1,000 for one year at a nominal rate of interest of 5%. At the end of the…
A: The real interest rate refers to the difference between the nominal interest rate and the inflation…
Q: What is the real interest rate?
A: Real interest rate is an interest rate which removes the effect of inflation and reflects the real…
Q: If you are a banker, should you consider the nominal or real interest rate when deciding which rate…
A: Nominal Interest rates : It refers to that cost of capital which a borrower has to pay and a lender…
Q: Optimizing economic agents use the real interest rate when thinking about the economic costs and…
A: The real average savings rate = Nominal rate- rate of inflation = 0.75-1.65% = (-)0.9% If banks…
Q: Define the term Net Income?
A: The monetary benefit or reward earned by an individual or business by producing goods or services,…
Q: The only kind of interest rate that can be used in the interest formulas is: (EXPLAIN YOUR ANSWER) A…
A: In a market for loanable funds and securities, a lender receives interest rate and a borrower pays…
Q: Consider the relationship between income and interest rate in the financial market. Suppose there…
A: Household savings are one of the important sources of supply of funds in the financial market.
Q: Distinguish between nominal and real interest rates. Which is more relevant in making investment and…
A: Inflation defines the average amount of increment in price of final commodities and services. It is…
Q: Why must we connect earning power and purchasing power to the concept of time?
A: Purchasing power is the quantity of good and services that can be purchased with a unit of currency…
Q: Discuss the relationship between nominal and effective interest rates?
A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…
Q: What is the nominal interest rate?
A: The nominal interest rate is an interest rate which does not take inflation into the account and is…
Q: Use the diagram below to answer the questions that follow. V J CONSUMER GOODS CAPITAL GOODS
A: The production possibilities frontier (PPF) is a basic production economic model used to outline how…
Q: Describe the concept of rate of return?
A: Rate of return is a rate at which investment has earned profit or suffered a loss in terms of…
Q: What is the difference between the Nominal Interest Rate and the Real Interest rate?
A: A continuous increase in the general price level is referred to as inflation.
Q: what is ? 1-)Nominal Interest Rate 2-)Real Interest Rate 3-)Labor Force
A: The Nominal Interest rate (i) is the interest rate when inflation is not taken into account. This…
Q: A man borrows P10,000 from a loan firm. The rate of simple interest is 15%, but the interest is to…
A: Interest: It is a sum paid or charged for the use of money or for borrowing money.
Q: How is NAIRU supposed to be a "better" definition than "Natural Rate"? Are either of these good…
A: In an economy, the terms Nairu and natural rate of unemployment are used to explain market condition…
Q: nominal rate of interest and what is the real rate of interest
A: The inflation depicts the rise in level of prices. The inflation is of different types: Creeping…
Q: What is meant by the cost of living? Describe the cost of living in the state of New Jersey.
A: Cost of living can be explained as the money required for the expenses incurred on the basic…
Q: Alyssa spends all of her money on comic books and mandarins. In 2014, she earned $27.00 per hour,…
A: The real value is the value of economic variable that is calculated in terms of any other variable.
Q: At the beginning of the year, what is the nominal rate of interest and what is the real rate of the…
A: Interest rate is the percentage amount charged by the lender from the borrower to use his money for…
Q: Explain how higher savings leads to a higher standard of living.
A: The savings is the money that people keep with them without spending for their consumption purpose.…
Q: ers to the professed interest rate. a Nominal b Effective c Ordinal d Actual
A: Professed interest rate or stated rate is the rate that banks or lender shows the interest rate…
Q: What are the three successive stages or phases in the circular flow of income
A: According to the given question Actually circular flow of income is an income which is represented…
Q: Using Kendall's notation, wh- Draw the rate diagram or the
A: Answer 1) Average rate of arrival = no. of shoppers incoming per hour =lembda= five customers per…
Q: Explain how a nominal interest rate of 100% can actually be a low rate.
A: Interest rates are the cost of borrowing and saving money and are stated as a percentage of the…
Q: Illustrate the relationship between nominal and effective interest rates?
A: The interest rate can take two forms which are nominal interest rate and effective interest rate.…
Q: A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is…
A: Microeconomics is a part of economics that is used to understand how resources can be allocated in…
Q: B. The real interest rate is 4 percent and the nominal interest rate is 7 percent.
A: When someone lets the other person borrow any asset, money, or property, it is known as lending. An…
Q: Is the Market interest rate commonly known as the nominal interest rate? Why?
A: Nominal interest rate is the amount of money that we need to pay or we receive without considering…
Q: What is a monotonically decreasing function of interest rate?
A: Monotonic functions are always Increasing or decreasing in nature, It means the value of function…
Q: Suppose sale of a firm is $22,000 and change in stock is $ 38,000 what would be the value of output?
A: According to question we are given that sales =$22,000 Change in stock=$38000 we have to find value…
Q: What is the U.S 6 month interest rate?
A: In the mentioned question we have been asked about the 6-month interest rate of the U.S.
Q: How each of the real interest rate ad the nominal interest rate is determined and explain the…
A: Real rate of interest and nominal rate of interest.
Q: What is the result of investments?
A: The amount of products purchased or accumulated per unit of time that are not utilised at the…
Q: What are the business factors
A: Business factors can be defined as the factors that affect the growth, profitability, sustainability…
Q: 6) Use the figure below to answer this question. Interest Rate (%) 12 10 Loanable Funds (in billions…
A:
Q: Define the Nominal Interest Rates?
A: The interest rate refers to the payment rate that is charged by a lender on a borrower for using the…
Q: On the following graph, use the orange points (square symbol) to plot the nominal Interest rates for…
A:
Q: What is the difference between nominal and real variables? Give two examples of each.
A: In economics, a nominal variable is one which is measured at current prices i.e. the prices of the…
What is meant by the rate of interest. How is the rate of interest determined? Explain in 500 words.
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- If you are a banker, should you consider the nominal or real interest rate when deciding which rate to charge for a loan? Explain in 250 words.(Please, explain with graph) A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better off or worse off after the change in interest rates? If the consumer becomes a borrower after the change is he better off or worse off?Hi based of the information in the picture I need help answering this question. At the beginning of the year, what is the nominal rate of interest and what is the real rate of interest?
- What is the difference between the Nominal Interest Rate and the Real Interest rate?(Explain with graphics) A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better off or worse off after the change in interest rates? If the consumer becomes a borrower after the change is he better off or worse off? (Explain with graphics)Production and Growth Describe the difference between nominal interest rate and real interest rate?
- all else equal, what does a lower interest rate mean for firms? what does a lower interest rate means for savers?how to find gross investment in the economy? is it correct if i add Net investment to Capital Consumption? Gross Investment = Net investment + Capital ConsumptionPut the following terms into a meaningful equation and then explain in words why this relationship is important to your everyday life: a. Real Interest Rate (r) b. Inflation (π) c. Nominal Interest Rate (i)
