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 258 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
Wow, this really help

frankwu0507

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Observable Universe Before and After Inflation Observable Universe Before and After Inflation
Risk for falls Risk for falls
Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ... Drug A is more potent than Drugs B and C. Drugs A and C have equal efficacy because both drugs have ...
Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
Math Joke: Be Rational, Get Real Math Joke: Be Rational, Get Real
Kepler’s Law of Equal Areas Kepler’s Law of Equal Areas
Video: Structures that affect circulation - heart and MABP

For a complete list of videos, visit our video library