The nominal interest rate increased

Assignment Help Business Economics

Reference no: EM131244224

If the CPI increased from 215 to 218 between 2012 and 2013, while the nominal interest rate increased from 3.25% to 3.80%. A. What is the inflation rate between 2012 and 2013? B. what is the real interest rate in 2013?

Reference no: EM131244224

Questions Cloud

Which she allocates between sandwiches and books : Suppose Mary’s income is $100 per week, which she allocates between sandwiches and books. Sandwiches cost $2 each. Books cost $10 each if she purchases between 1 and 5 books. If she purchases more than 5 books in a week, the price falls to $5 for the..

What is the slope of the budget constraint : Assume that you have a budget of $30 to spend on milk and cereal only. The price of milk is PM = $5 and the price of cereal is PC = $3.50. Graph the budget constraint. Be sure to put the quantity of milk (QM) on the horizontal axis. What is the slope..

Graph the supply and demand curves in this market : Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities four (Q = 4) through twenty (Q = 15) by units of one (1) for your graph.

What would be the value of domestic spending : In the island nation of Isolandia the GDP in period 1 is recorded as $1,600 billion. The nation runs a current account deficit of $200 billion in this period, due to which it borrows money at a market rate of interest of 4 percent. Compute the value ..

The nominal interest rate increased : If the CPI increased from 215 to 218 between 2012 and 2013, while the nominal interest rate increased from 3.25% to 3.80%. A. What is the inflation rate between 2012 and 2013? B. what is the real interest rate in 2013?

The economic theory of supply side economics : What are some significant principles involved in the economic theory of Supply Side Economics (Please include things like the effect of tax on business decisions). Are there other views on what Supply Side Economics or is there only one?

Calculate the value of country twos current account : Consider the following information for Country 2: GDP = 1600; Absorption = 1500; Unemployment Rate = 4%; Net UT = (-)150. Calculate the value of Country 2's Current Account (CA). Show all your calculations to obtain full credit. Country 2 is likely t..

Has the uno appreciated or depreciated : How many Uno’s does it currently take to purchase 1 unit of FX in Country 1's FX market? Has the Uno appreciated or depreciated? What is the new value of Country 1's real exchange rate (R)? Show your calculations to obtain full credit.

Current level of net exports of goods and services : Consider the following information for a different country: East Caledonia. In a position of External Balance? Calculate East Caledonia’s current level of Net Unilateral Transfers (net UT). Calculate East Caledonia’s current level of Net Exports of g..

User Account

All Pages