with an inflation rate of 9
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9. A. Explain the main differences between demandÂpull inflation and costÂpush inflation.
B. Analyze the differences between costÂpush inflation and builtÂin inflation.
10. A. Does the official unemployment rate understate the âtrueâ degree of unemployment in the United States?B. Assume that you owe $5,000.00 to Capital Bank. Would you gain or lose from an unanticipated decrease in inflation?
comparing the situation of a nominal rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
a) nominal interest rate of 10 percent since real interest rate is 1 percent
b) nominal interest rate of 6 percent since the real interest rate is 2 percent
c) nominal interest rate of 6 percent since the real interest rate is 4 percent
d) nominal interest rate of 10 percent since the real interest rate is 9 percent
Calculate real interest rate if the nominal interest rate is 9% and inflation is 5%.