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Lyrx [107]
3 years ago
9

What would you expect the nominal rate of interest to be if the real rate is 4.4 percent and the expected inflation rate is 7.5

​percent?
Mathematics
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

Nominal Interest rate=11.9%

Step-by-step explanations:

The Fisher effect is a theory propounded by an economist named Irving Fisher.

Fisher's equation shows the relationship between real Interest rate, expected inflation rate and nominal Interest rate.

It can be calculated by subtracting the expected inflation rate from the nominal Interest rate to give the real Interest rate.

Real Interest rate= nominal Interest rate - expected inflation rate

Given,

Real Interest rate= 4.4%=0.044

Expected inflation rate=7.5%=0.075

Nominal Interest rate=?

Therefore,

Real Interest rate=nominal Interest rate - expected inflation rate

Nominal Interest rate=Real Interest rate+expected inflation rate

Nominal Interest rate=0.044+0.075

Nominal Interest rate=0.119

Nominal Interest rate=11.9%

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Answer:

you +1 on each side

Step-by-step explanation:

a is 30-1=7

b is 32=8

to get from "a" to "b" you simply add one on both sides

32 - 1 = 7

+ 1 +1

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3 years ago
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Zolol [24]

We are asked to find 7 is what percent to 30.

We will use proportions to solve our given problem.      

Let us assume that 7 is n% of 30. So we can set a proportion as:

\frac{n}{100}=\frac{7}{30}

Let us solve for n.

\frac{n}{100}\cdot 100=\frac{7}{30}\cdot 100

n=\frac{7}{3}\cdot 10

n=\frac{70}{3}

n=23.333

Therefore, 7 is 23.333\% of 30.

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I'm not gonna give the answer because you have to solve it. Sorry. But I'll help you get it.

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Answer:

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Step-by-step explanation:

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