Question :
221.Ifthenominalinterestrateis8percentandexpectedinflationis2.5percent,thenwhatistherealinterestrate?
a.10.5percent
b.20percent
c.5.5percent
d.3.2percent
: 1262099
221.Ifthenominalinterestrateis8percentandexpectedinflationis2.5percent,thenwhatistherealinterestrate?
a.10.5percent
b.20percent
c.5.5percent
d.3.2percent
222.Whichofthefollowingcombinationsofrealinterestratesandinflationimpliesanominalinterestrateof6percent?
a.arealinterestrateof3percentandaninflationrateof2percent.
b.arealinterestrateof7percentandaninflationrateof1percent.
c.arealinterestrateof5percentandaninflationrateof1percent.
d.arealinterestrateof6percentandaninflationrateof1percent.
223.Whichofthefollowingcombinationsofnominalinterestratesandinflationimpliesarealinterestrateof7percent?
a.anominalinterestrateof5percentandaninflationrateof4percent.
b.anominalinterestrateof4percentandaninflationrateof3percent.
c.anominalinterestrateof8percentandaninflationrateof1percent.
d.anominalinterestrateof14percentandaninflationrateof2percent.
224.Inwhichcasebelowistherealinterestratethehighest?
a.thenominalinterestrate=1%andinflation=3%
b.thenominalinterestrate=6%andinflation=4%
c.thenominalinterestrate=2%andinflation=-1%
d.thenominalinterestrate=2%andinflation=1%
225.Inwhichcasebelowdoesaperson’spurchasingpowerfromsavingincreasethemost?
a.thenominalinterestrate=10%andinflation=8%
b.thenominalinterestrate=9%andinflation=6%
c.thenominalinterestrate=8%andinflation=4%
d.thenominalinterestrate=7%andinflation=2%
226.Walterputsmoneyinasavingsaccountathisbankearning3.5percent.Oneyearlaterhetakeshismoneyoutandnotesthatwhilehismoneywasearninginterest,pricesrose1.5percent.Walterearnedanominalinterestrateof
a.3.5percentandarealinterestrateof5percent.
b.3.5percentandarealinterestrateof2percent.
c.5percentandarealinterestrateof3.5percent
d.5percentandarealinterestrateof2percent
227.Shawnputsmoneyintoanaccount.Oneyearlaterheseesthathehas6percentmoredollarsandthathismoneywillbuy5percentmoregoods.
a.Thenominalinterestratewas11percentandtheinflationratewas5percent.
b.Thenominalinterestratewas6percentandtheinflationratewas5percent.
c.Thenominalinterestratewas5percentandtheinflationratewas-1percent.
d.Thenominalinterestratewas6percentandtheinflationratewas1percent.
228.Katarinaputsmoneyintoanaccount.Oneyearlatersheseesthatshehas6percentmoredollarsandthathermoneywillbuy4percentmoregoods.
a.Thenominalinterestratewas10percentandtheinflationratewas6percent.
b.Thenominalinterestratewas6percentandtheinflationratewas2percent.
c.Thenominalinterestratewas4percentandtheinflationratewas2percent.
d.Thenominalinterestratewas10percentandtheinflationratewas4percent.
229.Darlaputshermoneyintoabankaccountthatearnsinterest.Oneyearlatersheseesthattheaccounthas6percentmoredollarsandthathermoneywillbuy7.5percentmoregoods.
a.Thenominalinterestratewas13.5percentandtheinflationratewas7.5percent.
b.Thenominalinterestratewas13.5percentandtheinflationratewas1.5percent.
c.Thenominalinterestratewas6percentandtheinflationratewas-1.5percent.
d.Thenominalinterestratewas6percentandtheinflationratewas7.5percent.
230.Banksadvertise
a.therealinterestrate,whichishowfastthedollarvalueofsavingsgrows.
b.therealinterestrate,whichishowfastthepurchasingpowerofsavingsgrows.
c.thenominalinterestrate,whichishowfastthedollarvalueofsavingsgrows.
d.thenominalinterestrate,whichishowfastthepurchasingpowerofsavingsgrows.