Explain the meanings of nominal interest rate and realinterest rate. How are they related?

Q: The real interest rate is approximately equal to A. the growth in real GDP. B. the nominal interest…

A: since you have asked multiple questions and according to our policy we can only solve one question…

Q: how the nominal interest rate, the real interest rate, and inflation are relatedthrough the Fisher…

A: The interest rate in economics is that amount of payment that a lender charges on a borrower in…

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: Use the formula for simple interest, I= Prt, to find the indicated quantity. |= $66; r= 6%; t = 6…

A: Given: I=$66 r=6% t=6 months To find - P=?

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: 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: 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: If inflation is 2% and Nominal interest rate is 2.6%  Find real interest rate

A: Real interest rate = nominal interest rate - inflation rate.

Q: What is the Nominal interest?

A: The percentage of the principal amount that charged by a lender to a borrower is referred to as…

Q: If inflation is 1% and nominal interest rate is 9%  Calculate real interest rate

A: It's given in the question that:- Inflation = 1%  Nominal interest rate = 9% Thus we need to…

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: rate of​ inflation

A: The inflation calculates the increment in price level. There are different types of inflation:…

Q: If in the banking sector the nominal interest rate is 3% and inflation rate is 1.7%  Calculate what…

A: The information being given is:- Nominal interest rate in banking rate = 3% Inflation rate = 1.7% We…

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: Explain the concept: nominal interest rate

A: Interest rate is the a prescribed percentage that is supposed to be paid by the borrower to the…

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: 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: write an equation that defines the real interest rate. use the equation to explain why unexpectedly…

A: The debtor is the person or entity who owes money and on the other hand, the creditor is the person…

Q: Calculate inflation if real interest rate is 12% and nominal interest rate is 15%

A: The Given information is as follows:- Real interest rate = 12% Nominal interest rate = 15% Inflation…

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: 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: Suppose you make a loan of $100 that will be repaid to you in 1 year.if the loan is denominated in…

A: Nominal intrest is total of real intrest and rate .Increase in rate can cause increase in nominal…

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: The__________________ is the nominal interest rate minus the rate of inflation.   a)annualized…

A: Interest rates play an important role in the economy. The nominal and real interest rates are the…

Q: Refer to the hypothetical data in the table to answer the three questions Year        nominal…

A: Using Fisher equation to fill the values of nominal interest rate, real interest rate and inflation…

Q: Explain the difference between real and nominal interest rates. Can interest rates ever be negative?…

A: *Answer:

Q: If inflation is expected to​ increase,   A. the nominal interest rate will increase.   B.…

A: Real Interest Rate: The real interest rate is the rate that excludes or does not account the…

Q: There is a persistent fear that there will be a high level of deflation. Many economists warn that…

A: Following are the given values: Nominal interest rate = 5.25% Expected inflation = 1.50% Actual…

Q: What are the definitions of nominal?

A: Nominal is a concept used in finance that has many different definitions. In the first case, it…

Q: Do you think a negative nominal interest rate can happen?  What about a negative real interest rate?…

A: When people borrow money from the lender, a proportion of the amount borrowed is paid additionally…

Q: If Inflation is 2% and nominal interest rate is 4% Calculate real interest rate

A: The data presented in the question is :- Inflation rate = 2%  Nominal interest rate = 4% We need to…

Q: real interest rate

A: Formula for Real Interest Rate: Real Interest Rate = Nominal Interest Rate - Inflation Rate

Q: Describe what is Inflation-free interest rate?

A: Interest rate refers to percentage of investment that the lender receives for letting the borrower…

Q: Describe the concepts of nominal and effective interest?

A: The fraction of the principal amount that charged by a lender to a borrower is considered as…

Q: Using the table below, find the real value of a $1200 payment and find the amount that this $1200…

A: The consumer price index measures the price changes in the market basket of goods and services…

Q: If the rate of inflation is 5.7 %​, what nominal interest rate is necessary for you to earn a 2.2 %…

A: The nominal interest rate (or money interest rate) is the percentage increase in money you pay the…

Q: Is it possible for the nominal interest rate to be negative? Why or whynot?

A: Nominal Interest Rates are those interest rates which prevailed in an economy in a particular period…

Q: Consider an economy where: The real rate of interest The nominal rate of interest 4.11% 7.09%…

A: Real Interest Rate = 1 + Nominal Interest Rate1 + Inflation Rate -1 Real interest rate = Nominal…

Q: Suppose consumer confidence falls. What happens to the nominal interest rate and income?

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…