Real rate of interest and the inflation rate

Assignment Help Basic Computer Science
Reference no: EM131886008

Suppose the current inflation rate is a constant 7% and the central bank implements a disinflation policy to reduce it to its target rate of 3%. To achieve this objective, the central bank, by increasing its cash rate, raise the nominal interest rate from its current 9% to 14%. In the long run, at which the central bank achieves its inflation target, what will be the nominal rate of interest, the real rate of interest and the inflation rate?

Reference no: EM131886008

Questions Cloud

How much oversight each project team member may require : In addition, describe the key processes you would follow when managing the project schedule, including how much oversight each project team member may require.
What determines the natural rate of unemployment : What determines the natural rate of unemployment (or NAIRU)? What kind of policies do you think would reduce the natural rate of unemployment (or NAIRU)?
Explain the fisher hypothesis : Explain the Fisher hypothesis(use IS-LM model/ how about in the long-run)?
How to search for the copyright holders of certain musical : Present a scenario related to your profession or professional goals in which you would seek permission or license to use one of your selected songs.
Real rate of interest and the inflation rate : Which the central bank achieves its inflation target, what will be the nominal rate of interest, the real rate of interest and the inflation rate?
How each of the risks can affect the project team : Previously in the course, you were asked to think of a project you have been involved with at your place of employment.
What is the minimum growth rate : If the current rate of unemployment is 9% what is the minimum growth rate of output needed over five years to reduce the unemployment rate to 5%?
What is the direct threat defense : Analyze the key legal and ethical issues faced by the employer throughout the process. What is the "Direct Threat Defense" .
Explain the data warehouse that was designed : While this case study supports a specific data warehouse product, please locate another case. Explain the data warehouse that was designed in that case study?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Explain dynamic programming approach-longest weighted path

Assume we have a directed acyclic graph G = (V, E) with real-valued edge weights and two distinguished vertices s and t. Explain a dynamic programming approach for ?nding a longest weighted simple path from s to t.

  Methods for information systems can become vulnerable

While word weakness seems to define it pretty well, there are a number of mthods that information systems can become vulnerable.

  The various types of complex selection control structures

In your opinion of the various types of complex selection control structures, which would be the most challenging to write in pseudocode. Why. What best practices could be utilized

  Explain why database integrity constraints are important

Explain why database integrity constraints are important to ensure data quality and list the types of constraints that can be used with a relational database.

  Describe what intersection data is and what it describes

Describe why an additional relation is needed to represent a many-to-many relationship in a relational database.

  What is a process model

1. What is a process model? What is a data flow diagram (DFD)? Are the two related? If so, how? 2. Distinguish between logical process models and physical process models.

  Application screen design and layout function

Design focus is on providing the application screen design and layout function for the purchaser. You do not have to worry about the accounting system for the bookshop

  Closure of a set of functional dependencies

What is meant by the closure of a set of functional dependencies?

  Perform a computer forensic investigation

Is it easier to perform a computer forensic investigation if the suspect's computer is a Linux or UNIX system instead of Windows? Does the type of operating system affect the process at all? Consider all flavors of Linux/UNIX and Windows.

  Describe the trust model of pgp

Describe the trust model of PGP and how the public-key management works in practice

  Financial service firms deal with interest rate risk

Propose ways that financial futures can help financial service firms deal with interest rate risk.

  Weblogic server instance

What happens when a failure occurs and the stub cannot connect to a WebLogic Server instance?

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