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 139 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 :)

JaynaD87

  • Member
  • Posts: 368
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Hormonal regulation of digestion rate in the stomach and small intestine. Hormonal regulation of digestion rate in the stomach and small intestine.
These species are all at risk of extinction. Species with slow life-h These species are all at risk of extinction. Species with slow life-h
Summary of Hale’s Lactation Risk Categories Summary of Hale’s Lactation Risk Categories
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
How to convert units of any rate to another (Part 2) How to convert units of any rate to another (Part 2)
Chocolate May Lower the Risk of Stroke in Men Chocolate May Lower the Risk of Stroke in Men
Video: Wound Repair Animation

For a complete list of videos, visit our video library