What is the real rate of interest

Assignment Help Business Economics
Reference no: EM131071250

The annual rate of inflation average 2 percent during the past decade, but borrower and lenders anticipation that the price level will rise at the rate of 3 percent next year. The current nominal interest rate is 7 percent. What is the real rate of interest?

Reference no: EM131071250

Questions Cloud

Facility for real-time scheduling : Linux in recent years has provided the facility for real-time scheduling. Specifically, it provides two policies: SCHED_FIFO (first in first on) and SCHED_RR (round robin). Find out their details and briefly describe how they work and co-exist wit..
Draw the patient-experienced price line : Joe's demand curve for office visits is Quantity = 100-5p. In other words, Joe's Willingness to pay for the N^th visit = 20-0.2N^th visit. Joe has an insurance policy that covers up to $100 at a $0 copayment up to the limit. After hitting the limit, ..
Cash flow statements for three roughly equal-sized companies : The following are summary cash flow statements for three roughly equal-sized companies
Correct destination on a network : What communications device connects multiple computers together and transmits data to its correct destination on a network?
What is the real rate of interest : The annual rate of inflation average 2 percent during the past decade, but borrower and lenders anticipation that the price level will rise at the rate of 3 percent next year. The current nominal interest rate is 7 percent. What is the real rate of i..
Design specifications of the corporate knowledge web portal : Prepare and present the design specifications of the corporate knowledge Web portal for United States Pharma Corp which should include the following: Internal systems and databases that users of the portal would need to access
The output is fed to an amplifier : The output is fed to an amplifier having an infinite input impedance and a gain of 10. The output from the amplifier is acquired using a 10-bit ADC, with reference voltage of 5 V. The resolution of this system in units of oC is
Assignment on direct manipulation : Early computer systems relied on command line interfaces to perform all actions. Today, the majority of systems use direct manipulation rather than a command line interface. The goal of designing a direct manipulation interface is to make use of t..
Identifying potential risk-response and recovery : In Assignment 1, a videogame development company recently hired you as an Information Security Engineer. After viewing a growing number of reports detailing malicious activity, the CIO requested that you draft a report in which you identify potent..

Reviews

Write a Review

Business Economics Questions & Answers

  Terms of maintenance expense

What other variables should be considered when determining what is reasonable in terms of maintenance expense

  What are southwest airline political company

What are Southwest Airline's Political, Economical, Social, Technical, Legal, and Environmental Issues currently facing the company?

  Illustrate what do you think will characterize the goods

illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.

  Development of the supplier-induced demand hypothesis

An empirical observation that led to the development of the supplier-induced demand hypothesis is that when the supply of physicians in a market increases, the price also increases, which defies the basic rules of supply of demand. Proposed policies ..

  Q1 what is true about using the least squares method of

q1. what is true about using the least squares method of plotting an estimated regression line on a scatter diagram?q2.

  Discuss the elements that make up australia current account

Discuss the elements that make up Australia's Current Account. Outline the cyclical and structural factors that have caused Current Account Deficits in the last decade.

  Model over time would depletion from non-renewable resource

If we think about a model over time (dynamic), would depletion (production) from a non-renewable resource, we wouldn't have a traditional, static supply curve that is completely based on price. Would the classic demand curve still apply?

  What is the present value of the annual cash flow

An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..

  Find the slope of the budget constraint line

Jerry receives utility from days spent traveling on vacation domestically (D) and days spent traveling in a foreign country (F) as given by the utility U(D,F)=DF. Find the marginal utility of domestic travel and foreign travel. Using the marginal uti..

  What is the value of the ending inventory at lifo

Assuming that the perpetual inventory record is kept in dollars and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

  Without using the midpoint formula unit-elastic over price

Without using the midpoint formula, can you tell whether demand is elastic, inelastic, or unit-elastic over this price range.

  Price elasticity of demand at equilibrium price and quantity

Consider the fictitious good Derp. The demand for Derp is Q=1200-2P. Suppose the supply of Derp is given by Q=-600 +2P. What is the equilibrium quantity of Derp? What is the price elasticity of demand at the equilibrium price and quantity?

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