Why can a countrys nominal interest rate never be negative? Why can a countrys real interest rate
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
The nominal rate of interest can never be negative because that would indicate that people were will...View the full answer
Answered By
PU Student
cost accounting
financial accounting
auditing
internal control
business analyst
tax
i have 3 years experience in field of management & auditing in different multinational firms. i also have 16 months experience as an accountant in different international firms. secondary school certification.
higher secondary school certification.
bachelors in mathematics.
cost & management accountant
4.80+
4+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
For all parts of this question, assume that interest rate parity exists, the prevailing one-year U.S. nominal interest rate is low, and that you expect U.S. inflation to be low this year. a. Assume...
-
The government of the Republic of Andea is currently pegging the Andean peso to the dollar at E = 1 peso per dollar. Assume the following: In year 1 the money supply M is 2,250 pesos reserves R are...
-
One of the nightmares of central bankers is the liquidity trap. This occurs when nominal interest rates approach or even equal zero. Once the interest rate has declined to zero, monetary expansion is...
-
The following data represent the prices in dollars of general admission tickets for the last 18 concerts at one venue. Use the given data to determine the stems for this stem-and-leaf plot. $50 $61...
-
Ben Ryatt, professor of languages at a university in western Canada, owns a small office building adjacent to the university campus. He acquired the property 12 years ago at a total cost of $560,000:...
-
Use the formulas given in this section to determine, as accurately as possible, approximations for each missing entry in the following tables. a. b. f(x) f(x) 2..709847 2.21.373823 2.3 |-1.1 19214...
-
List four stakeholder groups with an interest in the typical firm.
-
Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase...
-
On March 1, Eckert and Kelley formed a partnership Eckert contributed $97,000 cash, and Kelley contributed land valued at $77.600 and a building valued at $107,600 The partnership also took Kelley's...
-
A counter-current gas-absorption column is to be designed to remove CO 2 from an inert gas stream by reaction with an amine solution at 20C. At this temperature, CO 2 reacts with the amine according...
-
Explain in terms understandable to a noneconomist why, for example, when interest rates rise sharply, the subsequent headline in the newspaper may say Bond Prices Plunge in Active Trading.
-
Because futures contracts are short-term, three-month contracts for fixed value, how can you use the futures market to hedge against longer-term risk for larger amounts of eurodollars?
-
Define financial leverage. As long as a firms rate of return on assets exceeds its after-tax cost of borrowing, why doesnt the firm increase borrowing to as close to 100% of financing as it can?
-
What is Consciousness? Examine a related theoretical construct - consciousness. The understanding of consciousness (what it is and how it occurs) has changed over time as neuroscience has advanced....
-
Yakky Yak (YY) sells Hockey Fantasy Sports smartphone apps and is owned 100% by Tom Green. Sales and net earnings for its most recent fiscal year total $3 million and $350,000, respectively. Tom...
-
Suppose you are interested in the effect of a variable X on another variable Y, and you believe that when X=0, Y is also 0. So you decide to estimate the model: instead of the more standard Y=nX +e...
-
Part 1 (1 point) If the city of Troy passed a law limiting the price of a parking permit to no more than $3, there would be excess demand of permits. Part 2 (1 point) If the city of Troy amends its...
-
We have distinguished several concepts of consciousness -Creature Consciousness, Transitive Consciousness, and Phenomenal Consciousness being the most important. Briefly describe what each of these...
-
The Associated Press (Dec. 7, 2005) reported on an international survey about the treatment of terrorist suspects. Random samples of 1000 adults from each of several nations were asked, Do you feel...
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
What are the main arguments used by nations to justify protection for particular industries? Which are economic, and which are noneconomic?
-
Evaluate the labor and infant industry arguments for protection.
-
Are tariffs justified as a retaliatory measure against other nations? Justify your answer.
-
A company finds that employees are accessing streaming websites that are not being monitored for malware or viruses. Which type of control can the network administrator implement to protect the...
-
1. Even as companies strive for greater efficiency, today's marketplace turbulence is also requiring them to strive for greater speed in responding to the threat of increasing variability in demand...
-
A decrease in demand and increase in supply will make price _ _ _ _ _ _ _ , and quantity _ _ _ _ _ _ . Question 3 3 options: Ambiguous, down Ambiguous, up Ambiguous, ambiguous Down, down Down,...
Study smarter with the SolutionInn App