Suppose the real interest rate

Assignment Help Business Economics
Reference no: EM13773080

Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill due to mature in one year at its face value of $1000?

PLEASE SHOW YOUR CALCULATIONS.

Reference no: EM13773080

Questions Cloud

Deposit yielding a simple annual nominal return : The expected return to a U.S. resident from putting funds into a Mexico peso deposit yielding a simple annual nominal return of 12% while the U.S. dollar is expected to depreciate at a simple rate of 20% over the year would be a simple rate of ______..
Devastating effect on the course of the great depression : According to Milton Friedman and Anna Schwartz, what was the Federal Reserve’s crime of commission that occurred in the Summer/Fall of 1931 that had a devastating effect on the course of the Great Depression?
Psychosocial causes of diseases : Use technology and information resources to research issues in managerial epidemiology.
Calculate EUAB and EUAC : A business called TopClass, Inc. has the following Costs and Benefits: Initial Cost: $70,000, Annual Costs: $7,500, Salvage Value: $10,000, and Benefits: $25,000 for years 1 and 2, $35,000 for years 3 and 4, $25,000 for years 5 and 6. The MARR is 10%..
Suppose the real interest rate : Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill ..
Money supply of the federal reserves crime of commission : According to Friedman and Schwartz, what was the consequence for the U.S. money supply of the Federal Reserves crime of commission?
President management agenda and new performance management : What were the major tenets of the President's Management Agenda and New Performance Management?
What is marginal revenue for perfectly competitive firms : Assume that the market for wheat is perfect competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by T C = 1+Q+Q2 , which results in marginal cost of MC = 1 + 2Q. W..
Authority-structure and organization : Identify who the performance activity outcomes are communicated to and who does the communicating. This describes who is responsible for overseeing data collection and preparing data reports.

Reviews

Write a Review

Business Economics Questions & Answers

  Lump sum tax cause the after tax consumption schedule

Does a lump sum tax cause the after tax consumption schedule to be flatter than the before tax consumption schedule.

  The total utility for water is higher than the total utility

The total utility for water is higher than the total utility for diamonds. You can explain the diamond-water paradox (that diamonds are expensive but not necessary for survival / not as useful, while water is inexpensive yet necessary for survival / ..

  Best explanation for the states historic reliance

which of the following is the best explanation for the state's historic reliance on severance taxes on oil and gas production.

  Explain health function eventually bend downward

Assume that health production is subject to diminishing returns and that each unit of health care employed entails a constant rate of iatrogenic (medically caused) disease. Would product of health function eventually bend downward

  Determine why some people obtain extra education

Conduct a cost-benefit analysis of obtaining a graduate degree. Assess both the short-term and the long-term costs and benefits to determine why some people obtain the extra education while others do not.

  Llustrate what are the quantities produced before and after

llustrate what are the quantities produced before and after the tax was imposed.

  Suppose that the price of hersheys chocolate increases

Suppose that the price of Hershey’s chocolate increases. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates your answer.

  How should manufacurer respond to this competitive threat

How should the manufacurer respond to this competitive threat? Suggest at least two alternatives.

  Definitions of management quoted from authors

Similarities in the definitions of management quoted from authors of management textbooks

  Elucidate the effect of capital formation by compering

Elucidate the effect of capital formation by compering the production possibility curve,at the present time and ten years in future, for two economies,one with a high and the other with a low rate of capital formation

  Ecommend that prisons be privatized

It has been estimated that private prisons are about 10 percent cheaper, on a every prisoner basis, than public prisons.

  Cost to consumers and businesses

The best use of scarce resources paid for at the minimum level of cost to consumers and businesses

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