Answer to Question #14253 in Macroeconomics for ndax

Question

Suppose real GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of money is constant, and the real interest rate is 6 percent.

a. What is the current inflation rate aand nominal inerest rate?
b. If the money supply growth rate inceases to 15 percent, how will your answer in part (a) change?

c. If you were an investor, how would the change in the money supply growth affect your real p rae?trofitability, assuming that you now receive the new nominal inerest?
d. Based on your previous answers, would you prefer a fixed or a floating interest on your investment? Which you would prefer if you thought the money supply growth was going to be reduced?



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Economics: Macroeconomics Macroeconomics Question #14242 from Kleopas christian Suppose real Gdp is growing at 4%, the money supply is growing at 11%, the velocity of money is constant,and the interest rate is 6%.
a) Whats the current inflation rate and norminal interest rate?
b) If the money supply growth rate increases to 15%, how will your answer in part (a) change?
c) If you were an investor, how would the change in the money supply growth affect your real profitability, assuming that you now receive the new norminal interest rate?

d) Based on previous answers, would you prefer a fixed or floating interest rate on your investments? which would you prefer if you thought the money supply growth was going to be reduced?

ANSWER FOR ME (c) and (d) please

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Economics: Macroeconomics Macroeconomics Question #14241 from susana briefly discuss two other complications that the minster of finance should consider in the implementation of fiscal policy (excluding crowing out and net exports)

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Economics: Economics of Enterprise Economics of Enterprise Question #14237 from tobias What does economists mean by the word inflation

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Economics: Macroeconomics Macroeconomics Question #14236 from susana suppose real GDP is growing at 4 percent, the money supply is growing at 11 percent, the velocity of money is constant, the real interest rate is 6 percent, what is the current inflation rate and nominal interest rate ? if the money supply growth rate is 15 percent, how will your answer in part (a) change? if your an investor, how would the change in the money supply growth affect your real profitability, assuming that you now receive the new nominal interest rate?

Answer 1

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