Question: please help with this question O a 15% If the nominal interest rate is 7% and the inflation is 8%, what is the real interest

please help with this question

please help with this question O a 15% If the nominal interest

O a 15% If the nominal interest rate is 7% and the inflation is 8%, what is the real interest rate? O b. None of these Oc. 7% O d. -1% Oe. 1%%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

In which case below does a person s purchasing power from saving increase the most? a . the nominal interest rate = 1 0 % and inflation = 8 % b . the nominal interest rate = 9 % and inflation = 6 % c...

Q:

please help! If the rate of inflation is 5.4%, what nominal interest rate is necessary for you to earn a 3.6% real interest rate on your investment? (Note: Be careful not to round any intermediate...

Q:

please help What is the real interest rate if the nominal interest rate is 8.93% and the expected inflation rate is 3.31% over the course of a year? Answer: % (DO NOT ROUND YOUR CALCULATIONS UNTIL...

Q:

Suppose that the nominal interest rate is 7 percent and the real interest rate is 5 percent. Instructions: Enter your answers as a whole number. a. What is the inflation premium? percent b. Given the...

Q:

If the nominal interest rate is 7 percent and the real interest rate is 2 perscent then what is the inflation rate

Q:

Multiple choice Question 1 The labour-force participation rate: a) measures the percentage of the total adult population in the labour force b) measures the percentage of the number of employed in...

Q:

Take Quiz Quiz Instructions HW on Inflation Due by 1pm on Thursday You get two attempts, Your best score will be used. D Question 1 1 pts The is a measure of the price level based on the consumption...

Q:

Question 1 of 70If real GDP in a particular year is $80 billion and nominal GDP is $240 billion, the GDP price index for that year is: A.100. B.200. C.240. D.300. Reset Selection Question 2 of 70If...

Q:

Thank you for helping Part 1: Nominal v. Real Interest Rates- Answer the questions. Show your work. 1. Assume the nominal interest rate is 7% and inflation is 3%. What is the real interest rate? 2....

Q:

Multiple choice: 1) (C10) In the economy of country A in 2016, consumption was $6000, exports were $1000, GDP was $12,000, government purchases were $1800, and imports were $1200. What was country...

Q:

Give an example of a probability problem which has to use both the addition rule and the conditional probability rule to solve it. Make sure to give all of the details in the problem that are needed...

Q:

The highly successful national chain Tea & Tech, offers its customers an opportunity to enjoy sustainably grown and processed beverages while tinkering with their favorite technology products....

Q:

When an individual converts a rental property to a principal residence A . an election under ITA 4 5 ( 3 ) is available to designate the property as principal residence for up to 7 years prior to the...

Q:

Which of the following statements about agile risk management is NOT true? Group of answer choices Agile techniques accommodate new high - priority requirements without increasing time or cost by...

Q:

Design a survey feedback intervention program, and use this to promote retention of key organizational personnel. page 467

Q:

Specify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts. page 459

Q:

Discuss what companies are doing to melt the glass ceiling. page 422