If the nominal rate of interest is 10 percent and the expected rate of inflation is 7 perc
A.27 percent
B.minus 3 percent
C.plus 3 percent
D.minus 27 percent
A.27 percent
B.minus 3 percent
C.plus 3 percent
D.minus 27 percent
名义和实际有效汇率指数(nominal and real effective exchange rate indexes)
What is the difference between a real discount rate and a nominal discount rate? When should a real discount rate be used in an NPV calculation, and when should a nominal rate be used?
Question 6
Consider the following data: Nominal GDP for 1994 was $6550 billion, as compared to $6250 billion for 1993. The GDP deflator for 1994 was 102.5, as compared to 100.0 for 1993.
(a)Calculate the rates of growth of nominal GDP and real GDP for 1994.
(b)What was the inflation rate (as measured by the GDP deflator) for 1994?
A.3%
B.16%
C.0.0421
D.0.04
Question 6
Assume that GDP grew from $120 billion in 1994 to $160 billion in 1995 and the GDP deflator from 100 in 1994 to 130 in 1995.
(a)Calculate the rate of growth of nominal GDP for 1995.
(b)Calculate the rate of growth of real CDP for 1995.
(c)What is the inflation rate for 1995?
A.you are able to obtain the necessary funds at a low nominal interest rate
B.the investment does not affect your cost of production
C.the present value of future income exceeds the cost of the investment plus interest on any money that you must borrow
D.you observe that your competitors are expanding their productive capital