Harare Zimbabwe's central bank today raised its key interest ra From 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was intended to slow Consumer spending, increase foreign buying of Zimbabwean dollars, and slow the rate of inflation, currently running at
Harare Zimbabwe's central bank today raised its key interest ra From 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was intended to slow Consumer spending, increase foreign buying of Zimbabwean dollars, and slow the rate of inflation, currently running at
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
2

Transcribed Image Text:WORLD VIEW
Zimbabwe Raises Key Interest Rate to 70%
Harare Zimbabwe's central bank today raised its key interest rate
from 50 percent to 70 percent. The governor of the Reserve
Bank of Zimbabwe said the higher rate was intended to slow
consumer spending, increase foreign buying of Zimbabwean
dollars, and slow the rate of inflation, currently running at
approximately 200 percent a year.
Source: News reports, September 12-15, 2019.
Please submit your answers as a whole number.
According to the World View, after the key interest rate was raised, what was
a. the nominal interest rate?
percent
b. the real interest rate?
percent
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education