Suppose a nominal interest rate is 12%, and the expected rate of inflation is 9%. If next year the expected rate of inflation rises to 11%, what would most likely happen as a result?

Suppose banks require a real interest rate of 10 percent. If they expect inflation to be 2 percent, what is the nominal interest rate?   Multiple Choice   5 percent   20 percent   8 percent   12 percent

The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.)   Year      Nominal Interest Rate      Inflation Rate                  (Percent)                   (Percent) 2014           0.1                         1. 6 2015         0.2                            0.1  2016          0.5                          1.3 2017          1.1                         2.1 2018         2.1                           2.4       On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years.     According to the table, in which year did buyers of six-month Treasury…

Which of the following groups would most likely be harmed by inflation? Group of answer choices spenders workers retirees none of the above Older people often reminisce about the “good old days” when prices were much lower. This is misplaced nostalgia primarily because in the “good old days” Group of answer choices prices were not really that low wages were much lower also When interest rates fall, investment expenditures by businesses Group of answer choices decrease increase

Calculate the value of inflation if real interest rate is 6.5% and the nominal interest rate is 8.2%

Give two specific reasons why inflation in Canada is higher than normal.

Suppose banks require a real interest rate of 10 percent. If they expect inflation to be 2 percent, what is the nominal interest rate?   Multiple Choice   5 percent   20 percent   8 percent   12 percent

Suppose that at the start of 1999, Ari invests their money in a savings account earning 3.6% interest. If inflation is 1% during 1999, calculate the real interest rate on Ari’s savings account by the end of 1999. Has the inflation-adjusted value of Ari’s savings increased or decreased?

Research suggests that macroeconomic factors can explain the dynamics of interest rates in the economy. Suppose we are interested in understanding whether inflation plays a role in explaining interest rates. Fitting a line between the current nominal interest rate i and current inflation we obtain: i = 0.041 -0.147 What is the expected level of interest rates when inflation is at the level of 4%?

The diagram at right shows the structure of cost and demand facing a monopolistically competitive firm in the short run. The profit-maximizing output level is units of output. (Enter your response as an integer.) The profit-maximizing price is $. (Enter your response as an integer.) Total revenue is $ (Enter your response as an integer.) Total cost is $. (Enter your response as an integer.) Total profit or loss is $ (Enter your response as an integer and include a negative sign where appropriate.) In the long run, firms will OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an economic profit. B. exit, shifting the demand facing the remaining firms to the right until the firms earn a normal profit. OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a normal profit. OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an economic profit. $14 $13 $12 $11 $7 MR 15 20…