QUESTION 4 If the nominal interest rate is 5 percent and the real interest rate
ID: 1162373 • Letter: Q
Question
QUESTION 4
If the nominal interest rate is 5 percent and the real interest rate is -3.5 percent, then the inflation rate is
a.
5 percent.
b.
-1.5 percent.
c.
1.5 percent.
d.
8.5 percent.
QUESTION 8
If in some year nominal GDP was $30 billion and the GDP deflator was 60, what was real GDP?
a.
$50 billion
b.
$2 billion
c.
$180 billion
d.
$90 billion
QUESTION 5
Oranges are considered intermediate goods
a.
whether the purchaser uses them to make juice to sell or eats them.
b.
if the purchaser uses them to make juice to sell others but not if the purchaser eats them.
c.
if the purchaser eats them, but not if the purchaser uses them to make juice to sell.
d.
None of the above is correct.
a.
5 percent.
b.
-1.5 percent.
c.
1.5 percent.
d.
8.5 percent.
Explanation / Answer
4)
then the inflation rate is=nominal interest rate-real interest rate
=5%-(-3.5%)
=8.5% or 8.5 percent
8)
real GDP=(30/60)*100
=50 billion
the above is answer..
5)
b. if the purchaser uses them to make juice to sell others but not if the purchaser eats them
because it is intermediate as it is used to make final product
the above is answer..