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

Author Question: The Costs of InflationIf you want to make a 11% real return on a loan that you are planning to make ... (Read 22 times)

april 19

  • Full Member
  • ***
  • Posts: 136
on: Nov 23, 2022

Question 1

Using Price Indexes to Correct for Inflation



Year		Nominal Average Hourly Earnings
CPI
       1$12​100
       213​107​
       318​113​

Based on the data in the table, the rate of growth of the average price level from Year 2 to Year 3 is ________. (Round to the nearest tenth when appropriate.)
◦ 38.5%
◦ 5.3%
◦ 5.6%
◦ 10.6%

Question 2

The Costs of Inflation

If you want to make a 11% real return on a loan that you are planning to make and the expected inflation rate during the period of the loan is 6%, then you should charge a nominal interest rate of ________.
◦ -5%
◦ 11%
◦ 17%
◦ 5%
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by april 19 on Nov 23, 2022

Marys

  • Full Member
  • ***
  • Posts: 171
Reply #1 on: Nov 23, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly


april 19

  • Member
  • Posts: 136
Reply 2 on: Nov 23, 2022
:D TYSM

daiying98

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

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?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
April Greiman, Does It Make Sense? April Greiman, Does It Make Sense?
Fuel should be heard returning to the fuel tank at the fuel return line if the fuel pump and ... Fuel should be heard returning to the fuel tank at the fuel return line if the fuel pump and ...
Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ... Return of oxygenated blood to the heart and entry into the aorta (red = oxygenated blood, blue = ...
Please help me with a Real Estate Course Problem Please help me with a Real Estate Course Problem
To make a 3.00 m solution, one could take 3.00 moles of solute and add To make a 3.00 m solution, one could take 3.00 moles of solute and add
Video: Hemodynamics Animation

For a complete list of videos, visit our video library