A) What happens if spending exceeds real GDP? B) What happens if real GDP exceeds spending? C) Which is worse for consumers? If in some year real GDP was $15 trillion and the GDP deflator was 300, what was nominal GDP? E. Explain the difference between n...
Central banks of developed economies, including theFederal Reservein the U.S., monitor inflation. Ifinflationoccurs too rapidly, it can push prices for basic necessities out of reach. Inflation also erodes consumer purchasing power, devalues currency, and can interfere with the ability to save. K...
It's important to understand that to obtain the real short-term federal funds rate, one would subtract the inflation rate from the nominal rate. For example, thepersonal consumption expenditure(PCE) rate, which is the rate that the Fed focuses on to gauge inflation, could be subtracted. Typi...
b. If the inflation rate is 5% but the public expects inflation of 0%, what is the unemployment rate? c. Suppose that the inflation rate is zero and the What does a long-run "Phillips curve" show? a) The level of unemployment at which expectations ...
The operative word here is “slightly.”Credit card debt is expensiveno matter what the federal funds rate happens to be. Let’s say you have an average balance of $5,000 on a card charging 25% APR. You’ll spend around $1,250 in interest over the course of a year. If your intere...
What happens to nominal interest rates? Why might the government be doing this? a. If we have demand for money curve and a supply of money curve and the Ms increases, what happens to the interest rate? Why? b. If the supply of money curve decreases what happens to the in...
increase or reduce inflation. If too much money is added to the circulation, this can -- in theory -- be clawed back through higher-rate taxation and can be used to pay off the national debt. However, this method can also devalue a currency and become a catalyst for inflation and a ...
The operative word here is “slightly.” Credit card debt is expensive no matter what the federal funds rate happens to be. Let’s say you have an average balance of $5,000 on a card charging 25% APR. You’ll spend around $1,250 in interest over the course of a year. If your in...
What happens if I have a reverse mortgage and I have to move to a nursing home? Eric SztanyoOwner at Team Sztanyo and We Buy NKY Houses Mark Levine, PhDProfessor, Daniels College of Business at The University of Denver Dr. Kareem TannousReal Estate & Mortgage Broker at Alliance Realty ...
The EU ETS represents the cornerstone of the EU climate policy framework. While most of the studies focus on the determinants of carbon price, this work wi