In Germany, banks are paying a positive interest rate on peoples' savings, as a result O a. Savers are worse off if the inflation rate in Germany is zero O b. Savers are better off if the inflation rate in Germany exceeds the nominal interest rate Oc. Savers are worse off if the deflation rate in Germany is zero d. Savers are better off if the deflation rate in Germany is zero

In Germany, banks are paying a positive interest rate on peoples' savings, as a result O a. Savers are worse off if the inflation rate in Germany is zero O b. Savers are better off if the inflation rate in Germany exceeds the nominal interest rate Oc. Savers are worse off if the deflation rate in Germany is zero d. Savers are better off if the deflation rate in Germany is zero

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The market interest rate in Alpha is 7 percent, and the market interest rate in Beta is 10 percent; the inflation rate in Alpha is 3 percent, and inflation rate in Beta is 8 percent. Which of the following statements is true? Multiple Choice O O O Both the real and nominal interest rates are higher in Beta. The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta. The real interest rate is higher in Beta, but the nominal interest rate is higher in Alpha. Both the real and nominal interest rates are higher in Alpha.
Inflation results in: O An increase in the purchasing power of money. A decrease in the purchasing power of money. O An increase in trade surplus. O An increase in savings and investment. A Moving to another question will save this response. DE
If inflation is higher than anticipated, benefit(s) and if inflation is lower than anticipated, benefit(s). O A. both debtors and creditors; no one O B. no one; both debtors and creditors O C. creditors, debtors O D. debtors; creditors If the interest rate on a loan is 4 percent and the actual inflation rate is 6 percent, the real interest rate is 10 percent. O A. True O B. False Click to select your answer. lenovo V560
To measure inflation, economists usually refer to the consumer price index. Which of these situations will cause the consumer price index to increase? a. an increase in the relative price of products O b. an increase in the prices of the basket of goods c. none of the choices d. an increase in the level of unemployment
Assume that in most years consumers consume roughly doble amounts of popcorn than potato chips. One year, the price of popcorn increased by 20% while the price of potato chips stayed constant. As a result, many consumers purchased more potato chips and fewer popcorn than usual. This price change would most likely cause O a. No change to either the CPI or GDP deflator O b. A larger change in the CPI than in the GDP deflator Oc. An equal change in the CPI and GDP deflator O d. A larger change in the GDP deflator than in the CPI A consumer is endowed with some capital, which they can use to produce output according to the production function y = k". They can divide that output between consumption now or save it as capital for next period. They have a utility function given by U(cj,c2) = In(c) + 99 In(c2). For which of the following values of a will the consumer want to save the largest percent of their output? O a. 2 Ob. .5 OC. Their saving rate does not depend on a d. 8 In a Solow model…
If the base year is 2006, the real GDP will not be calculated for 2005. This statement is O a. Can not determine O b. None of these O c. False statement O d. True statement
QUESTION 5Which of the following best describes inflation?O a. Economic growth.O b. An increase only in the price of energy.O c. An increase in the overall price level in an economy.O d. Ballooning debt.
Which of the following statements are correct? Select one or more: O a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices b. Inflation is measured by calculating the cost of a given bundle of goods. O c. The basket of goods used to calculate CPI inflation is tixed tor long periods O d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
You borrow $50,000 today at a rate of 5%. Today, inflation instantly rises to 7% and stays that way for the duration of your loan. Based on the above information today O you will pay the lender back exactly $55,500. O you will pay the lender back exactly $60,700. the real rate of interest on your loan is 10% the real rate of interest on your loan is -2% O the real rate of interest on your loan is 2%
QUESTION 17 In an imaginary economy of Tealand, the CPI in 2015 was 130 and the inflation rate was 3% between 2015-16. Based on this information, we can say that their CPI in 2016 was O a. 127.00. O b. 133.33. O C. 133.90. O d. 126.10.
Suppose that the rate of inflation is reduced from six to one percent. Over this time, the cumulative loss in real GDP is $30 billion. If potential GDP is $600 billion, then the sacrifice ratio is. O a. O b. 6 Ос. 20 O d. 1 O e. 10
Giving the following data for macro land : year 2015 : p1 15 and p2 17 year 2020 : p1 12 p2 14, what if the household consume 8q1 and 11q2 using 2019 base year, question la : Compute the measures of overall prices in 2019 and 2020 ? 1b : compute inflation rate of 2020 1c : interpret inflation rate of 1b