To maintain this real interest rate, how must the nominal interest rate change if the inflation rate
Question:
To maintain this real interest rate, how must the nominal interest rate change if the inflation rate falls to 4.5 percent a year?
Brazil keeps interest rates on hold Brazil’s inflation rate climbed to 10.7 percent at the end of 2015 and the country’s Monetary Policy Committee kept its benchmark interest rate at 14.25 percent.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
If the inflation rate falls to 45 percen...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Multiple Choice Questions: 1. At a higher than equilibrium real interest rate, the quantity of loanable funds supplied would be ________ than the quantity of loanable funds demandedthere would be a...
-
Explain the meaning of nominal interest rate and real interest rate. How are they related?
-
Suppose oil prices jump up and the Fed is completely accommodative: it keeps the real interest rate constant. How must the Fed adjust the nominal interest rate? How must it adjust the money supply?...
-
Mick Stone disposed of the following assets during tax year 2020-21: (1) On 19 May 2020, Mick sold a freehold warehouse for 522,000. This warehouse was purchased on 6 August 2008 for 258,000, and was...
-
A sheet of steel 2.5-mm thick has nitrogen atmospheres on both sides at 900C and is permitted to achieve a steady-state diffusion condition. The diffusion coefficient for nitrogen in steel at this...
-
A Japanese investor is holding the Nikkei 225 index, which is her version of the market. She thinks that three stocks, P, Q, and R, which are not in the Nikkei 225, are undervalued and should form a...
-
The accounting records of DVD Sales, Inc., include these accounts: Compute DVD's net cash provided by (used for) operating activities during March. Use the indirect method. Cash Accounts Receivable...
-
The Coca-Cola Company is a global soft drink beverage company (ticker symbol = KO) that is a primary and direct competitor with PepsiCo. The data in Exhibits 12.1312.15 include the actual amounts for...
-
La Ronge Nature Adventures (LNA) maintains a strict debt to equity ratio of 0.60. The current market price per common share is $60. LNA expects this year's earnings to be $210 million. a.What will...
-
You are a CA who has just been hired by Saskatoon Fields Forever Inc. (SFF), formerly MUGS Partnership (MUGS) as the controller. It is August 1, 2014, your rst day at SFF. You are meeting with Meghan...
-
Calculate the real interest rate in Brazil? Brazil keeps interest rates on hold Brazils inflation rate climbed to 10.7 percent at the end of 2015 and the countrys Monetary Policy Committee kept its...
-
The CPI measures the average prices paid by __________ for _________. A. urban consumers; a fixed basket of consumption goods and services B. urban consumers; the average basket of goods and services...
-
In Exercises 6592, factor completely, or state that the polynomial is prime. x 2 + 36
-
(A) We are given three diffent vectors: A = 6-3, B=-11+5j and C = A + B. (1) C = 2, (2) C = 51, (3) C = 5 + 2), (4) C=7+8 What is C in component form? A. 3 B. 1 C. 4 D. 2 Using the same three vectors...
-
Q7) Estimated investment function for Turkey between 1951-1976: where I: investment, Y: GNP, M: Imports. Following information is given = 1633.55 + 154.32Y+0.12Mt + 584.54D-41.42DtYt + 0.34DtMt i)...
-
Q4) We are trying to analyse the money spent for entertainment (ENT) in Turkey. Suppose we define: gender (G) as male or female; nationality (N) as Turkish or foreign; and marital status (M) as...
-
Consider the linear model: Y;= a + a (X - X) + U. Find the OLS estimators of ag and a. Compare with the OLS estimators of 30 and 31 in the standard model discussed in class (Y = 30 +3X; + ui).
-
1. A monopolist produces two commodities that are substitutes and having demand functions: X-8-P+P and X=9+P-5P, where 1,000 X, units of first commodity are demanded if its price is Rs P, per unit...
-
Define and describe a debit card.
-
Draw the major product for each of the following reactions: (a) (b) (c) 1) 9-BBN 2) H2O2, NaOH 1) Disiamylborane 2) H20, NaOH
-
Explain why the output at which average variable cost is at a minimum is smaller than the output at which average total cost is at a minimum. Lens body board factory pays $60 a day for equipment and...
-
Explain why the output at which average variable cost is at a minimum is smaller than the output at which average total cost is at a minimum. Lens body board factory pays $60 a day for equipment and...
-
Explain why the output at which average variable cost is at a minimum is smaller than the output at which average total cost is at a minimum. Lens body board factory pays $60 a day for equipment and...
-
Avondale Industries reported the following data for 2022: Current liabilities $55,000 Interest expense.. $6,000 Noncurrent liabilities. 60,000 Income tax expense. 2,400 Stockholders' equity. 50,000...
-
Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company Statement of Cash Flows-Indirect Method Operating activities: Net income Adjustments to...
-
Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company...
Study smarter with the SolutionInn App