The interest rate in the UK is 8%. The inflation rate in the US is 3% and in the UK 5%. Use the Fisher effect to find the US interest rate.

Suppose both nominal GDP rises by 10 percent and real GDP rise by 2percent. What has happened to the general price level? What is the inflationrate? Show your calculation.

The real interest rate in Africa is 1.1%.  In 2019, the inflation rate was 1.6%.  The expected inflation rate in 2021 is 1.4%. Calculate by how many percentage points we expect the nominal interest rate to change between 2019 and 2021.

The economist A.W. Phillips published a famous article in 1958 in which he showed a negative correlation between the rate of unemployment and the rate of inflation.  positive correlation between the rate of unemployment and the rate of inflation.  negative correlation between the rate of unemployment and the rate of interest.   positive correlation between the rate of unemployment and the rate of interest

Use the following data for 2019 to answer the question: Prices That Rose Health insurance Gasoline Lettuce (%) Prices That Fell +20.5 Televisions +12.8 Peanut butter +7.6 Oranges +5.9 Apples +4.2 Eggs +1.9 College textbooks +0.6 Coffee Average Inflation Rate: +2.3% Cigarettes Hot dogs College tuition Bananas (%) -20.8 -6.0 -5.5 -4.8 -4.6 -3.1 -1.4

A consequence of unanticipated inflation in an economy is that:Group of answer choices the rate of economic growth reaches a maximum. the risks of investing in a business increase. the level of productive activities in the economy increases. the allocation of resources in the economy becomes efficient.

The accompanying table provides the inflation rate in the year 2005 and the average inflation rate over the period 2006–2019 for eight different countries. Country Inflation rate in 2005 Average inflation rate in 2006–2019 Brazil 6.87% 5.47% Canada 2.2% 1.72% China 1.77 2.68 France 1.74 1.23 Indonesia 10.45 5.83 Japan −0.28 0.35 Turkey 8.18 9.53 United States 3.39 1.95 Data from: IMF. Given the expected relationship between average inflation and menu costs, rank the countries in descending order of menu costs using average inflation over the period 2006–2019. Rank the countries in order of inflation rates that most favoured borrowers with 10-year loans that were taken out in 2005. Assume that the loans were agreed upon with the expectation that the inflation rate for 2006 to 2019 would be the same as the inflation rate in 2005. Did borrowers who took out 10-year loans in Japan gain or lose overall versus lenders? Explain.