Octoplez7347 Octoplez7347

11-03-2020
Business

contestada

Assume a nominal interest rate on one-year U.S. Treasury Bills of 2.60% and a real rate of interest of 1.00%. Using the Fisher Effect Equation, what is the approximate expected rate of inflation in the U.S. over the next year?

Respuesta :

anthonynguyen3006 anthonynguyen3006

13-03-2020

Answer:

1.58%

Explanation:

Fisher equation:

(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected rate of inflation)

1.026 = 1.01 x (1+expected rate of inflation_)

--> Expected rate of inflation = 1.58%

Answer Link

Otras preguntas

The information in the nucleic acid ____________ is carried in the multiple groups of three nucleotides called codons.

Simplify the following expression: 4n − m + 3p + 2m − n − p 3n + m + 2p 3n + 5m − 2p 5n + 3m + 4p 5n + m − p

A dog sits 1.22 m from the center of a merrygo-round with an angular speed of 1.07 rad/s. If the magnitude of the force that maintains the dog’s circular motion

The world price of cotton is the highest price of cotton observed anywhere in the world. a. TRUE b. FALSE

In times of rising prices, inventory profits (or phantom profits) are said to occur under the FIFO cost flow assumption. This occurs because under FIFO, the rel

A constant current of 2A for 30 hours is required to charge a marine battery having a voltage at its terminals of v(t) = 12(1 + e −t/30) V, where t is in hours.

Which of the following is not true about Darwin’s book On the Origin of Species? a. He worked on the manuscript for three years. b. It was successful.

What term describes the position of the toes to the ankle

Which of the following is not an undefined term? point ray line plane

Gabriel invested $540 in an account paying an interest rate of 6.4% compounded monthly. Assuming no deposits or withdrawals are made, how much money would be in