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

Author Question: The Fisher equation implies that an increase in the nominal rate of interest relative to the real ... (Read 80 times)

bcretired

  • Hero Member
  • *****
  • Posts: 525
on: Jun 30, 2018
The Fisher equation implies that an increase in the nominal rate of interest relative to the real rate indicates that ________.
 
  A) inflation is expected to rise
  B) inflation is expected to decrease
  C) the real cost of borrowing has increased
  D) the real cost of borrowing has decreased
  E) none of the above

Question 2

Explain the relationship between business cycles in different countries.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

matt

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Business cycles across countries are related but not perfectly synchronized. Since countries trade with each other, if one country enters a recession this will reduce exports from other countries to the recessionary country and will have a negative effect on real GDP in the exporting countries. Also, macroeconomic shocks can be global. Oil price shocks often impact many nations at the same time, as did the financial crisis of 2007-2008. Due to factors such as these, business cycles appear to be related across countries, and in instances of global shocks, fairly synchronized as well.


bcretired

  • Member
  • Posts: 525
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
Motion of the barycenter of the Solar System relative to the Sun Motion of the barycenter of the Solar System relative to the Sun
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
How to analyze transformations of a quadratic equation that is in vertex form How to analyze transformations of a quadratic equation that is in vertex form
After 159 days,she paid a maturity value of $11,626, which included interest of $814. After 159 days,she paid a maturity value of $11,626, which included interest of $814.
A promissory note for $600.OO dated January 15, 2017. requires an interest payment of $120 00 ... A promissory note for $600.OO dated January 15, 2017. requires an interest payment of $120 00 ...
Video: Sister chromatids of a metaphase chromosome animation

For a complete list of videos, visit our video library