User Account

All Pages

Compute the purchasing power gain or loss for the year

Assignment Help Macroeconomics
Reference no: EM13319796

A firm has a net monetary liability balance of $10,000 on January 1, 2001. During the first third of the year, the balance decreased to $7,500. During the second third of the year, the balance increased to $12,500. During the last third of the year, the balance increased to $20,000. The general price index was 100 during the first third of the year, 110 during the second third, and 106 during the last third. Compute the purchasing power gain or loss for the year.

Reference no: EM13319796

Questions Cloud

Find the mean and standard deviation when salary is measured : Let X denote the annual salary on university professors in the United States, measured in thousands of dollars. Suppose that the average salary is 52.3, with a standard deviation of 14.6.
Use integration to find the expected prison sentence : Let X denote the prison sentence, in years, for people convicted of auto theft in California. Suppose that the pdf of X is given by
Find the probabilities of the following events : Let X be the random variable distributed as Normal (5,4). Find the probabilities of the following events
Compute the following holding gains : A plot of land costing $200,000 was acquired on January 1, 2001. The price level was 120 on that date. One-quarter of the land was sold on December 31, 2001, for $60,000 when the general price level was 180. Compute the following holding gains:
Compute the purchasing power gain or loss for the year : A firm has a net monetary liability balance of $10,000 on January 1, 2001. During the first third of the year, the balance decreased to $7,500. During the second third of the year, the balance increased to $12,500.
What was her nominal rate of return : Katie earned a 2.7 percent real rate of return on her investments for the past year. During that time, the risk-free rate was 4.1 percent and the inflation rate was 3.6 percent. What was her nominal rate of return?
Determine the percentage change of the euro between these : In mid-March 2007, the U.S. dollar equivalent of a euro was $1.3310. In mid-July 2009, the U.S. dollar equivalent of a euro was $1.4116. Determine the percentage change of the euro between these two dates.
Arnold corporation has been authorized to issue : Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%,noncumulative preferred stock and 2,000,000 shares of no-par common stock
What happens to the demand for diet cola brand x : Ceteris paribus, Diet Cola Brand X and Diet Cola Brand Y are substitutes in consumption. The price of Diet Cola Brand Y falls.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Illustrate what are institutional arrangements

Illustrate what are institutional arrangements. Why are they considered important fundamental determinants of economic growth and development.

  What is the consumer surplus under monopoly

A group of firms in competitive market produced 20 units of a good when the market price was $2. They incurred no marginal cost. Eventually they realized the benefits they could get by teaming up and acting as a monopolist.

  Flexible exchange rate system

Given the high value of the Canadian dollar relative to the U.S. dollar, Canada should lower the value of the dollar and keep it at this lower level,

  Compute the equilibrium values

Assume that an earthquake destroys part of capital stock. Forecast what will happen to total production, the real return to capital, and real wage.

  Elucidate why at one point in time a keynesian approach

Elucidate why, at one point in time, a Keynesian approach to managing the macro-economy might be appropriate while, at another point in time, a classical approach might be more likely to produce a superior outcome.

  Find the earnings level at which the earnings subsidy ends

On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above. Find the earnings level at which the earnings subsidy ends. Discuss the effect of the program participation on wor..

  Compute the percentage increase in real gdp per person

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year REAL GDP (2000 prices) population 1987 $6,435,000 million..

  Illustrate what economic events or changes

Illustrate what economic events or changes will "shift" demand and supply curves, and separately "move" demand or supply along their respective curves.

  European nation for three consecutive years

European nation for three consecutive years and comment about possible time changes and eventual differences across countries.

  Do it matter whether temporary increase in military spending

Alternatively, suppose that the temporary increase in government purchases is for infrastructure (roads, sewers, bridges, etc) rather than for military purposes. The government spending on infrastructure makes private investment more productive, i..

  Describe the total demand curve

Consider two individuals considering how many iced coffee drinks to buy during the coming week.For each person determine how many drinks will be bought during the week.

  Federal reserve tools to help economy

What measures and tools does Federal Reserve have at its disposal to address economy. What has the Fed employed in the past two years to help economy?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd