This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The nominal interest rate is equal to the: a. Real risk-free interest rate plus expected inflation. ... (Read 137 times)

abc

  • Hero Member
  • *****
  • Posts: 543
on: Jun 30, 2018
The nominal interest rate is equal to the:
 a. Real risk-free interest rate plus expected inflation.
  b. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium.
  c. Real interest rate plus risk premium plus tax/subsidy premium plus maturity premium plus expected inflation.
  d. Real interest rate plus expected inflation.
  e. None of the above.

Question 2

Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
 a. The quantity of real loanable funds per time period falls and real GDP falls.
 b. The quantity of real loanable funds per time period falls and real GDP rises.
 c. The quantity of real loanable funds per time period rises and real GDP remains the same.
 d. The quantity of real loanable funds per time period and real GDP remain the same.
 e. There is not enough information to determine what happens to these two macroeconomic variables.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

perkiness

  • Sr. Member
  • ****
  • Posts: 348
Reply #1 on: Jun 30, 2018
Answer to Question 1

.D

Answer to Question 2

.A


abc

  • Member
  • Posts: 543
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kusterl

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Many exhaust manifolds are constructed of pressed steel and are free flowing to improve engine ... Many exhaust manifolds are constructed of pressed steel and are free flowing to improve engine ...
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
The expected value for a binomial probability distribution is _____. The expected value for a binomial probability distribution is _____.
Real skeleton of a lion Real skeleton of a lion
Video: Gastrulation: cross section of the frog

For a complete list of videos, visit our video library