Whenever you discount a future sum of money into its present value, you must know I. the interest rate. II. the number of years in the future in which the money will be received
A) only I
B) only II
C) both I and II
D) neither I nor II
C
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What special role does the president play in creating fiscal policy?
What will be an ideal response?
The gold standard established fixed exchange rates among all countries
a. True b. False Indicate whether the statement is true or false
Which of the following would cause the dollar to depreciate?
A) an increase in the demand for dollars B) a decrease in the demand for dollars C) a decrease in the supply of dollars D) a decrease in the demand for imports from foreign countries
You took out a loan one year ago at a nominal interest rate of 7.5%. The CPI stood at 173.2 at the time and you expected it to rise to 178.6 over the year. Today the CPI is actually 179.5. Calculate the expected real interest rate on the loan and the real interest rate on the loan.
What will be an ideal response?