Calculate the expected real interest rate if the nominal interest rate is 8%, the expected inflation rate is 4%, and the inflation rate is 5%.
What will be an ideal response?
Expected real interest rate = nominal interest rate minus expected inflation rate = 8% - 4% = 4%.
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Natural disasters like severe earthquakes are devastating to the economy as well as to the individuals harmed due to
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An increase in the number of corporations in a portfolio from 1 to 10 reduces
a. market risk by more than an increase from 110 to 120. b. market risk by less than an increase from 110 to 120. c. firm-specific risk by more than an increase from 110 to 120. d. firm-specific risk by less than an increase from 110 to 120.
In the open-economy macroeconomic model, the supply of loanable funds comes from
a. national saving. Demand comes from only domestic investment. b. national saving. Demand comes from domestic investment and net capital outflow. c. Only net capital outflow. Demand for loanable funds comes from national saving. d. domestic investment and net capital outflow. Demand for loanable funds comes from national saving.