8 - Weber State University
... A) increased by 2%. B) decreased by 18%. C) decreased by 2%. D) increased by 18%. 25) Which of the following does NOT affect nominal GDP? A) tax rate B) foreign exchange rate C) nominal money supply D) expected inflation rate 26) If nominal GDP growth has accelerated permanently (assuming Y(N), is c ...
... A) increased by 2%. B) decreased by 18%. C) decreased by 2%. D) increased by 18%. 25) Which of the following does NOT affect nominal GDP? A) tax rate B) foreign exchange rate C) nominal money supply D) expected inflation rate 26) If nominal GDP growth has accelerated permanently (assuming Y(N), is c ...
4A FIRST LOOK AT MACROECONOMICS
... C) the fluctuations of real GDP around potential GDP. D) the maximum point of real GDP as the economy moves through the business cycles. Answer: B Topic: Productivity Growth Slowdown Skill: Recognition ...
... C) the fluctuations of real GDP around potential GDP. D) the maximum point of real GDP as the economy moves through the business cycles. Answer: B Topic: Productivity Growth Slowdown Skill: Recognition ...
The basic Solow model
... An optimal consumption rule...............................................................................32 What happens when the rate of time preference decreases?................................33 The modified golden rule............................................................................ ...
... An optimal consumption rule...............................................................................32 What happens when the rate of time preference decreases?................................33 The modified golden rule............................................................................ ...
Market-Consistent Valuation of Long-Term
... underwriting process. At the same time, insurance companies waive the right to cancel contracts. Neglecting in ation and waiving cancellation rights necessitates adjustments to guarantee the whole-life coverage. However, adjustments in general lead to increasing premiums, which are disadvantageous f ...
... underwriting process. At the same time, insurance companies waive the right to cancel contracts. Neglecting in ation and waiving cancellation rights necessitates adjustments to guarantee the whole-life coverage. However, adjustments in general lead to increasing premiums, which are disadvantageous f ...
NBER WORKING PAPER SERIES MONETARY-FISCAL POLICY INTERACTIONS BEYOND
... taxation. Accounting for these effects may be important for designing tax systems. Because the fiscal theory is an intrinsically general equilibrium phenomenon, any discussion of the theory must explicitly account for monetary policy behavior. The theory underscores that monetary and fiscal policies ...
... taxation. Accounting for these effects may be important for designing tax systems. Because the fiscal theory is an intrinsically general equilibrium phenomenon, any discussion of the theory must explicitly account for monetary policy behavior. The theory underscores that monetary and fiscal policies ...
Corporate Finance
... bond rate at that time was 2.75%. Using an estimated equity risk premium of 5.76%, we estimated the cost of equity for Disney to be 8.52%: Cost of Equity = 2.75% + 1.0013(5.76%) = 8.52% Disney’s bond rating in May 2009 was A, and based on this rating, the estimated pretax cost of debt for Disney is ...
... bond rate at that time was 2.75%. Using an estimated equity risk premium of 5.76%, we estimated the cost of equity for Disney to be 8.52%: Cost of Equity = 2.75% + 1.0013(5.76%) = 8.52% Disney’s bond rating in May 2009 was A, and based on this rating, the estimated pretax cost of debt for Disney is ...
Read the Full Report
... The dramatic rise in Canadian house prices has been a major concern for policymakers, including the Bank of Canada. As housing prices have shot upwards, however, the Bank’s policy target – the rate of inflation, as determined by year-over-year growth in the Consumer Price Index (CPI) – has shown onl ...
... The dramatic rise in Canadian house prices has been a major concern for policymakers, including the Bank of Canada. As housing prices have shot upwards, however, the Bank’s policy target – the rate of inflation, as determined by year-over-year growth in the Consumer Price Index (CPI) – has shown onl ...
M-19
... domestic prices constant in the two countries). Conversely, when a country’s currency depreciates, its goods abroad become cheaper and foreign goods in that country become more expensive. Appreciation of a currency can make it harder for domestic manufacturers to sell their goods abroad and can incr ...
... domestic prices constant in the two countries). Conversely, when a country’s currency depreciates, its goods abroad become cheaper and foreign goods in that country become more expensive. Appreciation of a currency can make it harder for domestic manufacturers to sell their goods abroad and can incr ...
Determinants of Inflation in Nepal: An Empirical Assessment
... government to finance the budget deficits which may crowd out the private investment. This increases the demand for credit, other things being equal; this will lead to a higher interest rate. Its immediate effects will be seen in the reduced private sector investment and consumption that implies low ...
... government to finance the budget deficits which may crowd out the private investment. This increases the demand for credit, other things being equal; this will lead to a higher interest rate. Its immediate effects will be seen in the reduced private sector investment and consumption that implies low ...
NBER WORKING PAPER SERIES NONLINEAR ADVENTURES AT THE ZERO LOWER BOUND
... as illustrated, for instance, by Eggertsson and Woodford (2003)— for monetary policy— and Christiano, Eichenbaum, and Rebelo (2011)— for …scal policy. However, the quantitative analysis of the ZLB is complicated by the essential nonlinearity that it generates. Along the equilibrium path of the model ...
... as illustrated, for instance, by Eggertsson and Woodford (2003)— for monetary policy— and Christiano, Eichenbaum, and Rebelo (2011)— for …scal policy. However, the quantitative analysis of the ZLB is complicated by the essential nonlinearity that it generates. Along the equilibrium path of the model ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
... calling for monetary and fiscal restraint in the face of external crises became strongly questioned. Should a country facing a sudden stop tighten its fiscal and monetary policies? Or conversely, should it relax those policies in order to attenuate the output contraction that typically occurs during ...
... calling for monetary and fiscal restraint in the face of external crises became strongly questioned. Should a country facing a sudden stop tighten its fiscal and monetary policies? Or conversely, should it relax those policies in order to attenuate the output contraction that typically occurs during ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Exchange Rate Theory and Practice
... Corden (1972) in his study of monetary integration. Wage behavior abroad determines the specific form which foreign disturbances take in the domestic economy, while wage behavior at home determines the difference which the choice of regime makes to the behavior of domestic output. 2 . The trade patt ...
... Corden (1972) in his study of monetary integration. Wage behavior abroad determines the specific form which foreign disturbances take in the domestic economy, while wage behavior at home determines the difference which the choice of regime makes to the behavior of domestic output. 2 . The trade patt ...
! Optimal International Reserves Behavior for Turkey K. Azim Özdemir
... to buy and sell the foreign currency at the pegged rate. Even in a floating exchange rate regime central banks may require international reserves to reduce the variability of exchange rates. Also by holding international reserves countries may improve the terms and conditions of loans offered in the ...
... to buy and sell the foreign currency at the pegged rate. Even in a floating exchange rate regime central banks may require international reserves to reduce the variability of exchange rates. Also by holding international reserves countries may improve the terms and conditions of loans offered in the ...
Consolidated Financial Statements
... The consolidated financial statements include the accounts of the Company and entities under its control. Control exists when an entity is exposed, or has rights, to variable returns from its involvement with investees and has the ability to affect those returns through its power over them. All inte ...
... The consolidated financial statements include the accounts of the Company and entities under its control. Control exists when an entity is exposed, or has rights, to variable returns from its involvement with investees and has the ability to affect those returns through its power over them. All inte ...
8 the economy at full employment: the classical model
... GDP, why there is ever-persistent unemployment in our economy, and the functioning of the capital market. One way to motivate students in the study of the labor underpinnings of the macroeconomy is to address the topic of wages. Students readily understand the difference in money wages versus real w ...
... GDP, why there is ever-persistent unemployment in our economy, and the functioning of the capital market. One way to motivate students in the study of the labor underpinnings of the macroeconomy is to address the topic of wages. Students readily understand the difference in money wages versus real w ...
chapter 26: managing client portfolios
... costs: Spending rate = $126 million (current spending need) divided by ($2,000 million current fund balance less $200 million library payment) = $126 million/$1,800 million = 7 percent The expected educational cost increase is 3 percent. The sum of the two components is 10 percent. Achieving this re ...
... costs: Spending rate = $126 million (current spending need) divided by ($2,000 million current fund balance less $200 million library payment) = $126 million/$1,800 million = 7 percent The expected educational cost increase is 3 percent. The sum of the two components is 10 percent. Achieving this re ...
Performance Evaluation
... Actual purchases are likely to lead to higher costs due to • Commissions • “Bid-Ask” Spread – the prior trade may have been at a bid, while your trade may be at the ask price (reverse if selling) • Market trend – are prices moving higher? • Liquidity impact – your demand may exceed share available a ...
... Actual purchases are likely to lead to higher costs due to • Commissions • “Bid-Ask” Spread – the prior trade may have been at a bid, while your trade may be at the ask price (reverse if selling) • Market trend – are prices moving higher? • Liquidity impact – your demand may exceed share available a ...
FREE Sample Here
... AACSB: Reflective Thinking 40) Develop a simple model of inflation by identifying at least two exogenous variables and describing, briefly, how the value of these exogenous variables will impact the rate of increase in the overall level of prices in the economy. Answer: Answers will vary. The most a ...
... AACSB: Reflective Thinking 40) Develop a simple model of inflation by identifying at least two exogenous variables and describing, briefly, how the value of these exogenous variables will impact the rate of increase in the overall level of prices in the economy. Answer: Answers will vary. The most a ...
Performance Evaluation
... Actual purchases are likely to lead to higher costs due to • Commissions • “Bid-Ask” Spread – the prior trade may have been at a bid, while your trade may be at the ask price (reverse if selling) • Market trend – are prices moving higher? • Liquidity impact – your demand may exceed share available a ...
... Actual purchases are likely to lead to higher costs due to • Commissions • “Bid-Ask” Spread – the prior trade may have been at a bid, while your trade may be at the ask price (reverse if selling) • Market trend – are prices moving higher? • Liquidity impact – your demand may exceed share available a ...
Paper-14: Advanced Financial Management
... designed differently, but have identical capacity and do exactly the same job. Machine P costs ` 75,000 and will last for 3 years. It costs ` 20,000 per year to run. Machine Q is an ‘economy’ model costing only ` 50,000, but will last only for 2 years, and costs ` 30,000 per year to run. These are r ...
... designed differently, but have identical capacity and do exactly the same job. Machine P costs ` 75,000 and will last for 3 years. It costs ` 20,000 per year to run. Machine Q is an ‘economy’ model costing only ` 50,000, but will last only for 2 years, and costs ` 30,000 per year to run. These are r ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... In practice, it is the interest rate that directly affects economic activity, for example, by affecting firms’ decisions about investing. Targeting the interest rate thus gives the Fed more control over the key variable that matters to the economy. ...
... In practice, it is the interest rate that directly affects economic activity, for example, by affecting firms’ decisions about investing. Targeting the interest rate thus gives the Fed more control over the key variable that matters to the economy. ...
The Political Economy of Public Debt in Brazil
... Brazilian states, after the debt renegotiation and the “Fiscal Responsibility Law” were living within very strict bounds; 5) The fixed exchange rate regime in Brazil was much more flexible, so that the disequilibrium was partly corrected before depreciation. ...
... Brazilian states, after the debt renegotiation and the “Fiscal Responsibility Law” were living within very strict bounds; 5) The fixed exchange rate regime in Brazil was much more flexible, so that the disequilibrium was partly corrected before depreciation. ...
Thirlwall`s Law and the Long-Term Equilibrium Growth Rate: an
... θ1εzt − θ 2it + (θ1η + ψ + 1)(pdt - p ft ) π − (1− θ1 + θ 2 ) ...
... θ1εzt − θ 2it + (θ1η + ψ + 1)(pdt - p ft ) π − (1− θ1 + θ 2 ) ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.