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Irina-Kira [14]
2 years ago
14

In year 1 the price level is constant and the nominal rate of interest is 6 percent. But in year 2 the inflation rate is 3 perce

nt. If the real rate of interest is to remain at the same level in year 2 as it was in year 1, then in year 2 the nominal interest rate must fall by 3 percentage points. rise by 9 percentage points. rise by 6 percentage points. rise by 3 percentage points.
Business
1 answer:
LiRa [457]2 years ago
6 0

The nominal interest rate will rise by 3%.

Nominal interest rate is the sum of real interest rate and inflation rate. Real interest rate is interest rate that has been adjusted for inflation. Inflation is the persistent rise in general price levels.

Nominal interest rate in year 2 = real interest rate + inflation rate

6% + 3% = 9%

Nominal interest rate in year 1 = 6%

Change in nominal interest rate = 9% - 6% = 3%

To learn more, please check: brainly.com/question/21323568

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Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 job
kow [346]

Answer:

Suppose that you purchased a conventional call option on growth in Non-Farm Payrolls (NFP) with an exercise price of 210,500 jobs. The NFP conventional contract pays out $85 for every job created in excess of the exercise price. a. What is the value of the option if job growth is 193,500.

The value of the option if job growth is 193,500 is $0.

Explanation:        

Since the job growth of 193,500 is less than the exercise price of 210,500 jobs, the value of the option on the contract in the given question is Zero.

Therefore, the value of the option if job growth is 193,500 is $0.

7 0
3 years ago
Read 2 more answers
In 1981, 16 percent of wives earned more than their husbands. what was the percentage as of 2005?
AnnZ [28]
Given that <span>In 1981, 16 percent of wives earned more than their husbands.

It is reported that in 2005, about 26% of wives earned more than their husbands.</span>
7 0
3 years ago
Suppose that when the price of a good is $15, the quantity demanded is 40 units, and when the price falls to $6, the quantity in
Paraphin [41]

Answer:

(A) -5/6

Explanation:

Price elasticity of demand = % change in quantity demanded ÷ % change in price

% change in quantity demanded = (60-40)/40 × 100 = 20/40 × 100 = 50%

% change in price = ($6-$15)/$15 × 100 = -$9/$15 × 100 = -60%

Price elasticity of demand = 50% ÷ -60% = -5/6

8 0
3 years ago
Why the exist an economy?
MAVERICK [17]

Answer:

Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people

hope this helps

Explanation:

4 0
2 years ago
A competitive firm produces output using three fixed factors and one variable factor. The firm's short run production function i
Nesterboy [21]

Answer:

D) 75

Explanation:

Our initial production function is:

q = 305X - 2X²        

we calculate the derivative of q:

(q') = 305 - 4X

MP = 305 - 4X

$10 / $2 = 305 - 4X

5 = 305 - 4X

4X = 305 - 5 = 300

x = 300 / 4

x = 75

6 0
3 years ago
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