Explain how real interest rates could be very high

Reference no: EM131191928

During the Great Depression of the 1930s, nominal interest rates were close to zero. Explain how real interest rates could be very high even though nominal interest rates were very low.

(Hint: Prices fell during parts of the Great Depression.)

Reference no: EM131191928

Questions Cloud

Select a specific type of health care organization : Select a specific type of health care organization. Which market segments pose opportunities for growth, and which pose threats to the organization's survival? Provide at least one strategy related to the assessment and interaction with its market..

Why a trip to hawaii next year would be valued more : Use the concept of present value to explain why a trip to Hawaii next year would be valued more to most people than the same trip in the year 2015.

What is the consolidated balance to be reported for land : Big reported a Land account of $1.1 million and Little reported a Land account of $700,000. Assume no asset impairments have taken place. What is the consolidated balance to be reported for land?

Explain the process of deindividuation : Discuss how deindividuation might also occur outside the presence of a crowd, such as in other settings in which a person feels anonymous.

Explain how real interest rates could be very high : During the Great Depression of the 1930s, nominal interest rates were close to zero.- Explain how real interest rates could be very high even though nominal interest rates were very low.

Discuss in detail how an agency relationship can be created : Discuss in detail how an agency relationship can be created? Identify and describe the categories of authority by which an agent can bind a prin-cipal and a third party in contract

Explain how the characteristics of good design : Explain how the characteristics of good design contribute to the product quality. For example how do coupling, cohesion, and modularity affect reliability of systems?

Policy changes and the natural rate of unemployment : Policy changes and the natural rate of unemployment Go to the ABS website (www.abs.gov.au). Look under the links `Statistics', `By Catalogue Number', `6'..., `62..', `6202', `Downloads', `Table 01', ‘Data1' worksheet.

What is the net present value of building a new plant : Assuming the parameters of (b), but that the competition will catch up in five years and the market demand is sufficiently high, what is the net present value of building a new plant with new technology, assuming a $500,000 salvage value in Year 5

User Account

All Pages