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 65 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
Excellent

ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president
A typical OBD-II data link connector (DLC). The location varies with make and model and may even be ... A typical OBD-II data link connector (DLC). The location varies with make and model and may even be ...
Maze-dull rats did not make significantly more errors than maze-bright rats when both groups were ... Maze-dull rats did not make significantly more errors than maze-bright rats when both groups were ...
Fingertip kneading along the paraspinal muscles from shoulders to buttocks. Check to make sure all ... Fingertip kneading along the paraspinal muscles from shoulders to buttocks. Check to make sure all ...
Please advise 'How To' on Real Estate Math problem (Answer Provided)? Please advise 'How To' on Real Estate Math problem (Answer Provided)?
AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ... AAC, Inc. is planning to issue $5,000,000 in 180-day maturity notes paying a rate of 12 percent ...
Video: Membrane transport proteins - pores, gated channels and pumps

For a complete list of videos, visit our video library