Difference between ex-ante and ex-post real interest rate

Assignment Help Business Economics
Reference no: EM131423826

Explain the difference between ex-ante and ex-post real interest rate. Why do investors not know the ex post rate when they make their initial investment?

Reference no: EM131423826

Questions Cloud

Demographic pattern affect the natural rate of unemployment : One of the explanations of this change in the natural rate of unemployment is based on the demographic pattern in the U.S. How does the demographic pattern affect the natural rate of unemployment?
Create a customer-driven culture throughout the sales firm : Create a customer-driven culture throughout the sales organization and firm. Recruit and hire the best sales talent. Train and coach the right skill set.
Understand the conflicts inherent : How can we as managers at once understand the conflicts inherent in change while at the same time manage for well being in organizations? what are some effective ways to provide constructive criticism in a supportive and helpful manner to team mates ..
Current inflation rate and nominal interest rate : Suppose real GDP is growing by 3 percent, the money supply is growing at 10 percent, the velocity of money is constant, and the real interest rate is 5 percent. (a) What is the current inflation rate and nominal interest rate?
Difference between ex-ante and ex-post real interest rate : Explain the difference between ex-ante and ex-post real interest rate. Why do investors not know the ex post rate when they make their initial investment?
What are the effects if the forces are weak : Discuss how the strength of the Five-Forces in an industry affects the prices businesses can charge for their products. What are the effects if the Forces are strong? What are the effects if the Forces are weak?
What stages have experienced and are currently experiencing : What stages have you experienced and are currently experiencing. What behaviors/issues are present that indicate the stage of development for your team?
Determine the equilibrium price and quantity : Graphically construct the supply and demand schedules and determine the equilibrium price and quantity.
Analyze data using questions in previous exercise : This variable is calculated by dividing TBBMC by the area corresponding to bone in the DXA scan. The units are grams per squared centimeter (g/cm2). Here are the TBBMD values for the same subjects:- Analyze these data using the questions in the pr..

Reviews

Write a Review

Business Economics Questions & Answers

  Impact producer behavior or consumer behavior

Consider the market for pizza. Indicate whether each of the following events is more likely to impact producer behavior (supply) or consumer behavior (demand). Will supply/demand increase or decrease?

  Method the price elasticity of demand for a good

Using the midpoint method the price elasticity of Demand for a good is computed to be approximately

  What is the maximum amount of good

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available, and individual income is $600, Px=15 Py=10, and they are already purchase 30 units of good X?

  What is the level of utility

Suppose Nia's utility function is given by the equation U(PC, SM) = 10PC+ 20SM. What combination of PC and SM should Nia buy to maximize her utility? What is the level of utility?

  What if the company lowers the price

Illustrate what would you expect to happen to the company's total revenue if the shoe prices were increased. What if the company lowers the price.

  What effects does this have on the equilibrium real wage

Suppose that there preventative consumer’s preferences change, in that his or her marginal rate of substitution of leisure for consumption in- creases for any quantities of consumption and leisure. Explain what this change in preferences means in mor..

  Graph chloes indifference curves for scarves and hats

Chloe loves fashion and her scarf and hat must always match. Therefore she views scarves and hats as one to one complements U = min {S,H}. Graph Chloe's indifference curves for scarves and hats.

  Short-run if customer’s incomes increases

Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..

  The annualized percentage forward discount for the yen

A forward premium for a given currency (say the nominal bilateral exchange rate value of the dollar where S = 80 yen/1 dollar = 80) occurs when the value of the currency as given by the forward spot rate appreciates such as S = 85 yen/1 dollar = 85. ..

  Annual annuity-what is the present worth

Given an annual annuity of $30 for years 1 through 3 and a deferred annual annuity of $100 for years 4 through 7 and an interest of 10%/year, what is the present worth? Provide your cash flow diagram.

  Calculate consumer surplus at equilibrium

Assume the market for fruit from a local fruit stand has the supply and demand curves given below. Find equilibrium price and quantity in the market. Calculate consumer surplus at equilibrium. Calculate producer surplus at equilibrium.

  Explain why standardised products

Explain why standardised products are desirable for international companies, and the circumstances that are likely to prevent its implementation?

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!

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