Test Bank Solution Manual for Macroeconomics - CPI and the Cost of Living Already Passed
6 views 0 purchase
Course
Macroeconomics
Institution
Macroeconomics
Test Bank Solution Manual for Macroeconomics - CPI and the Cost of Living Already Passed
Last month, the interest rate on a money fund averaged 0.08% a year and on 5-year CDs it was 2.6 a year. The inflation rate was 0.1% a year.
To maintain these real interest rates in the coming months, the ...
Test Bank Solution Manual for Macroeconomics - CPI and the Cost of Living Already Passed
Last month, the interest rate on a money fund averaged 0.08% a year and on 5-year CDs it was 2.6 a
year. The inflation rate was 0.1% a year.
To maintain these real interest rates in the coming months, the nominal interest rate will - Answers
Increase on both assets by 0.1 percent
The real interest rate is calculated using the formula.
Real interest rate = Nominal interest rate - Inflation rate.
If the inflation rate rises 0.1 percent to 0.2 percent, a difference of 0.1 percent, then the equation tells
us that the nominal interest rate must also rise by 0.1 percent to keep the real interest rate constant.
Last month, the interest rate on a money fund averaged 0.08% a year and on 5-year CDs it was 2.6 a
year. The inflation rate was 0.1% a year.
The real interest rate on a 5-year CD is - Answers 2.5 Percent a year
The real interest rate is calculated using the formula.
Real interest rate = Nominal interest rate - Inflation rate.
The nominal interest rate on a 5-year CD is 2.6 percent a year and the inflation rate is 0.1 percent a year.
So the real interest rate is 2.6 percent - 0.1 percent, which is 2.5 percent a year.
Last month, the interest rate on a money fund averaged 0.08% a year and on 5-year CDs it was 2.6 a
year. The inflation rate was 0.1% a year.
, The real interest rate on a money fund is - Answers -0.02 percent a year.
The real interest rate is calculated as
Real interest rate=Nominal interest rate - Inflation rate.
The nominal interest rate on a money fund is 0.08 percent a year and the inflation rate is 0.1 percent a
year.
So the real interest rate is 0.08 percent -0.1 percent, which is - 0.02 percent a year.
Imagine that you are given $1K to spend and told that you must spend it all buying items from a Sears
catalog. But you have a choice of catalog. You may select from the 1903 catalog or from Sears.com
today. You will pay the prices quoted in the catalog of your choice.
The _______________ bias in the CPI is relevant to your choice of catalog. - Answers New goods bias
and the quality is a relevant choice.
The quality change in the goods and the goods offered in the present day are better than in 1903.
Box Office Mojo calculates real dos-office receipts by multiplying the movie revenue by the
a)_______________________
and dividing by the b)________________________________________________ - Answers a) movie
ticket price in the current year:
b) movie ticket price in the year the movie revenue was earned
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TutorJosh. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
