What were the real interest rates in france and germany

Assignment Help Business Management

Reference no: EM131278495

1. If expected inflation is 100% and the real required return is 5%, what should the nominal interest rate be according to the Fisher effect?

2. In early 1996, the short-term interest rate in France was 3.7% and forecast French inflation was 1.8%. At the same time, the short-term German interest rate was 2.6% and forecast German inflation was 1.6%.

a. Based on these figures, what were the real interest rates in France and Germany?

b. To what would you attribute any discrepancy in real rates between France and Germany?

Reference no: EM131278495

Questions Cloud

Relationship between strategic and financial planning : Write a 1,050- to 1,400-word paper in which you describe the relationship between strategic and financial planning. Describe some of the key activities that are a part of both processes.

What is maximum possible change in the spot exchange rate : If the U.S. government imposes a tariff of $0.50 per bushel on wheat imported from England, what is the maximum possible change in the spot exchange rate that could occur?

Determine the direction and magnitude of the resultant : Water is sprayed radially outward over 180° as indicated in Fig. P5.67. The jet sheet is in the horizontal plane. If the jet velocity at the nozzle exit is 20 ft/s, determine the direction and magnitude of the resultant horizontal anchoring force ..

Reasonable accommodating and work-life conflicts : Using the e-Activity, summarize the outcome of the selected case. Then, outline a corrective action plan geared toward mitigating the unfair reasonable accommodation practices within the organization in question.

What were the real interest rates in france and germany : Based on these figures, what were the real interest rates in France and Germany?- To what would you attribute any discrepancy in real rates between France and Germany?

Would you classify this person as leader or manager and why : Would you classify this person as a leader or manager? Why? Identify constructive or destructive communication behaviors this person exhibits.

What is your county plan to address these issues : What are the demographics (e.g., age, ethnicity, socioeconomic status, employment status, and education makeup, if available) of your county? What are the identified most pressing health issues in the community?

Reflecting on different approaches to strategy : This week, the focus has been on reflecting on different approaches to strategy and the capability of those to utilize existing positions and strengths versus their encouragement of the development of alternative or creative outcomes.

What should happen to the us interest rate : Suppose a change in expectations regarding future U.S. inflation causes the expected future spot rate to decline to $1.52 : £1. What should happen to the U.S. interest rate?

User Account

All Pages