LIDLCII Real Interest Rate 8% re 6% USA * Supply 8% 6% 3% Not enough information Demand Q of LF Suppose that after the change illustrated, people in China begin saving more money in American assets. Which of the following is a reasonable interest rate that would ensue from this new change?
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LIDLCII Real Interest Rate 8% re 6% USA * Supply 8% 6% 3% Not enough information Demand Q of LF Suppose that after the change illustrated, people in China begin saving more money in American assets. Which of the following is a reasonable interest rate that would ensue from this new change?
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- Using the following data, calculate the equilibrium interest rate Y=7,000G=4000T=2,000C=150+0.75(Y-T)I=1,000-50rPublic Savings = -2000Private savings = 1100National Savings = -900Interest Rate (%) 2004 0 $75 150 225 Investment ($) Price Level Interest Rate (%) AS Q₁ Real GDP X Investment Demand 0 $50 100 150 Investment ($) -AD₂ (/=$100) AD3 (/=$50) Z AD₁ (/=$150) O Increase the money supply from $75 to $150 billion. O Increase the money supply from $150 to $225 billion. O Decrease the money supply from $225 to $150 billion. O Make no change in the money supply. Refer to the above diagrams, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The interest rate in the economy is 12 percent. What should the Fed do to achieve a noninflationary full-employment level of real GDP (Qf)?Chapter 2 Assignment Long-Term Interest Rate 10 9 8 7 3 2 1 0 D Amount of Funds Ⓒ Without influence from foreign sources of funds, the long-term equilibrium interest rate is term equilibrium interest rate is %. %. With influence from foreign funds, the long- The following graph depicts the market for business investments in the United States. The green line represents the relationship between the long-
- I want answer with explanation... Only typed answer I want... I'll upvote you... You have 20,000 EUR. The annualized UK interest rate is 4 percent, and the annualized EURO zone interest rate is 2% percent. The current spot rate of the EURO is GBP 0.8. If you expect the spot rate to remain the same after one year, which investment alternative would you choose? How would you structure your transactions? Calculate the gain compared to the second-best alternative if your expectation about the spot rate one year from now turns out to be true.Could you expnad on how you got the equilibrium interest rate value? i don't get 0.065 when is solve the euqation 900 = 50/(1+i) + 50/(i+1)^2 + 1000/(1+i)^2. Also, my answer from plugging into the equation i part a. to find the demand and supply at YTM = 0.05, doesn't match using the same equation to get the answer?Assume that Eurodollar deposit offer a rate of return of 10% while dollar deposit in US Bank offer 8% rate of return. What will happen the value of USD against EUR? Make sure that you use demand supply diagram to explain such impact.
- Given the following economic information for Country A (in RM billion): Saving (S) = –500 + 0.3Yd Investment (I) = 400 – 200r Government spending (G) = 500 Taxes (T) = 200 Nominal money supply (Ms ) = 4000 Money demand for transactions (Md t/P) = 0.2Y Money demand for speculations (Md s) = 1600 – 500r Price (P) = 2 di mana Y dan r adalah masing-masing mewakili tingkat pendapatan dan kadar bunga. where Y and r represent the levels of income and interest rate, respectively. Based on the above information, i) . Derive an expression for the IS and LM curve (four decimal point) in Y says. ii) . Calculate the equilibrium levels of income and interest rate (three decimal point).Refer to the following list, and explain who will be buying Canadian dollars and who will be selling. a) a Canadian businesswoman visiting Japan The Canadian businesswoman will be selling vCanadian dollars to buy Japanese yen b) a Russian tourist visiting Cape Breton The Russian tourist will be (Click to select) v dollars to spend in Cape Breton. c) an American corporation building a new plant in Saskatoon The American corporation will be (Click to select) v Canadian dollars in order to purchase the building in Saskatoon. d) a Canadian bank expanding its operations in the United States The Canadian bank will be (Click to select) v Canadian dollars to buy American dollars to expand its operations in the U.S. (Click to select) selling buyingSuppose a handbill publisher can buy a new duplicating machine for $ 500 and the duplicator has a 1-year life. The machine is expected to contribute $ 550 to the year's net revenue. Instructions: enter your anwer as a whole number. What is the expected rate of return? (in percentage) If the real interest rate at which funds can be borrowed to purchase the machine is 8 percent, will the publisher choose to invest in the machine? Will it invest in the machine if the real interest rate is 9 percent? if it is 11 percent?
- Suppose that the one-year interest rate in Australia is 7.66% p.a. and in New Zealand, it is 8.63% p.a. Suppose also that the current spot rate is EAUD/NZD=1.1578 and the current 12-month forward rate is FAUD/NZD=1.046. Assuming there are no transaction costs, which of the following is true? Selected Answer: A. An arbitrager can make a profit of 0.1054 AUD for every AUD he borrows to invest in NZD assets. B. An arbitrager can make a profit of 0.1054 NZD for every NZD he borrows to invest in AUD assets. C. An arbitrager can make a profit of 0.0186 AUD for every AUD he borrows to invest in NZD assets. D. An arbitrager can make a profit of 0.0186 NZD for every NZD he borrows to invest in AUD assets. E. An arbitrager cannot profit in this scenario as covered interest parity holds The correct answer is B please explian it and show your calculation processWho benefits from an increase in interest rates? O people who are borrowing money no one O people who are saving money O everyone Previous Next ASUS f6 19 & 5 8 近Paysl Question 20 Which one of the following is an incorrect statement about US financial system? O Saving and investment are important determinants of long run growth in GDP and living standards. O The primary advantage of mutual funds is that they allow people with small amounts of money to diversity their holdings O Financial Intermediaries are financial institutions through which savers can directly provide funds to borrowers O The institutions that make up this system-the bond market, the stock market, banks, and mutual funds-- have the role of coordinating the economy's saving and investment. Question 21 Which one of the folawing is an incorrect statement about the history of The US Central Bank? O In 1836. President Andrew Jackson closed the Second Bank of the United States (SBUS) because of his deep distrust of financial elites. It led to a period of rapid monetary expansion and inflation, which was soon folowed by financial panics in 1837 and 1839 and a severe recession O The…
