Question: I need a typed answer as well as soon . Only typed answer by keyboard needed . Solve urgent please I will surely give a

I need a typed answer as well as soon . Only typed answer by keyboard needed . Solve urgent please I will surely give a helpful rating for your answer if you solve fast and correctly.

1) Circle the best answer: a) True or False: A positive interest rate implies people prefer one dollar in now to one dollar in the future. b) True or False: If inflation = 25% & nominal interest = 37.5%; then an exact measure of real interest = 10% c) True or False: If inflation = 25% & real interest = 10%; then an exact measure of nominal interest = 35 % 2) a) Consider the Budget Constraint below. What is the implied interest rate? b) Assume the individual is "endowed with" money now (Er = 100), but none later so (Ez = 0). Show how the budget constraint moves if the interest rate decreases. Do they benefit or are they hurt? Yr. 2 C & E $130 Yr. 1 C & E
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
