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

Author Question: A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers. ... (Read 33 times)

2125004343

  • Hero Member
  • *****
  • Posts: 566
on: Jun 30, 2018
A decrease in the real interest rate acts as ________ for lenders and as ________ for borrowers.
 
  A) an increase in wealth; an increase in wealth
  B) an increase in wealth; a decrease in wealth
  C) a decrease in wealth; an increase in wealth
  D) a decrease in wealth; a decrease in wealth

Question 2

If the inflation rate target is 2, the current inflation rate is also 2, and the output gap is zero, then according to the Taylor rule, the nominal federal funds rate should be ________ percent.
 
  A) zero
  B) two
  C) four
  D) three
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

SamMuagrove

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


2125004343

  • Member
  • Posts: 566
Reply 2 on: Jun 30, 2018
Gracias!

chereeb

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Political parties vs interest groups Political parties vs interest groups
Decrease in Fertility, 1800–1900 Decrease in Fertility, 1800–1900
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Please advise 'How To' on Real Estate Math problem (Answer Provided)? Please advise 'How To' on Real Estate Math problem (Answer Provided)?
If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ... If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ...
Determine the nominal annual rate of interest of the following ordinary general annuity. Determine the nominal annual rate of interest of the following ordinary general annuity.
Video: Automated external defibrillator (AED)

For a complete list of videos, visit our video library