What is the difference between nominal and real income?
Q. Let's say you're income is 10 dollars. A pack of gum cost 1 dollar. Later, the pack of hum now cost 2 dollars. What is your nominal income and what is your real income?
Asked by Vinny L - Tue May 12 20:30:19 2009 - - 1 Answers - 0 Comments
A. There is not enough information given to answer the question properly. You need to know whether you still have an income of 10 dollars after the price of gum changed, or if the income itself has changed. You need to know what the general price level is, not just the price of one item like gum. If you use only the information given, then you would have to assume that the income is still 10 dollars, and that all prices doubled, like the price of gum in this example. In that case, nominal income would be 10 dollars, and real income would be half of that, or 5 dollars.
Answered by jerry w - Wed May 13 02:55:48 2009
Q. Let's say you're income is 10 dollars. A pack of gum cost 1 dollar. Later, the pack of hum now cost 2 dollars. What is your nominal income and what is your real income?
Asked by Vinny L - Tue May 12 20:30:19 2009 - - 1 Answers - 0 Comments
A. There is not enough information given to answer the question properly. You need to know whether you still have an income of 10 dollars after the price of gum changed, or if the income itself has changed. You need to know what the general price level is, not just the price of one item like gum. If you use only the information given, then you would have to assume that the income is still 10 dollars, and that all prices doubled, like the price of gum in this example. In that case, nominal income would be 10 dollars, and real income would be half of that, or 5 dollars.
Answered by jerry w - Wed May 13 02:55:48 2009
What's the difference between nominal and ratio scales in statisitics?
Q. Confused. whats the difference between nominal scale of measurement and ratio scale of measurement? Examples applying to these two would be appreciated. thanks
Asked by nimbostratus - Wed Sep 12 13:26:32 2007 - - 1 Answers - 0 Comments
A. A nominal scale is one in which membership in a category may be determined (eg, male/female or black ball/white ball) without ranking. It is a non-numeric measure. Ratio scale measure is where the interval between the numeric measure has meaning and there is a true zero (eg, weights, absolute temperature) Examples of use: Contingency tables, any normal curve based statistic (F-ratio)
Answered by fjblume2000 - Wed Sep 12 13:34:30 2007
Q. Confused. whats the difference between nominal scale of measurement and ratio scale of measurement? Examples applying to these two would be appreciated. thanks
Asked by nimbostratus - Wed Sep 12 13:26:32 2007 - - 1 Answers - 0 Comments
A. A nominal scale is one in which membership in a category may be determined (eg, male/female or black ball/white ball) without ranking. It is a non-numeric measure. Ratio scale measure is where the interval between the numeric measure has meaning and there is a true zero (eg, weights, absolute temperature) Examples of use: Contingency tables, any normal curve based statistic (F-ratio)
Answered by fjblume2000 - Wed Sep 12 13:34:30 2007
How do you calculate inflation rate between 2 quarters when you are given nominal and real output?
Q. This is an economics question. It states: Using the following information, compute the inflation rate (rate in change in prices) between the first quarter of 2006 and the first quarter of 2007. Data in billions of dollars. Year 2006: Nominal Output: $13,008.4 Real Output: $11,316.4 Year 2007: Nominal Output: $13,620.2 Real Output: $11,532.8 Someone please help if you kow anything about this.
Asked by amm - Mon Jul 21 17:09:07 2008 - - 1 Answers - 0 Comments
A. Change in real output: RGDP = 11'532.8 / 11'316.4 = 1.019122689 + 1.9% Nominal output rise due to increase in real output = = 13'008.4 * 1.019122689 = 13'257.16 Change in nominal output due to changes in price level = = 13'620.2 / 13'257.16 = 1.027384789 1.0274 + 2.74% So inflation between given periods was 2.74% Or direct method = = [ NGDP(2) / NDGP(1) ] x [ RGDP(1) / RDGP(2) ] = = [13'620.2 / 13'008.4 ] x [ 11'316.4 / 11'532.8] 1.0274 = +2.74%
Answered by Yuri - Mon Jul 21 17:19:34 2008
Q. This is an economics question. It states: Using the following information, compute the inflation rate (rate in change in prices) between the first quarter of 2006 and the first quarter of 2007. Data in billions of dollars. Year 2006: Nominal Output: $13,008.4 Real Output: $11,316.4 Year 2007: Nominal Output: $13,620.2 Real Output: $11,532.8 Someone please help if you kow anything about this.
Asked by amm - Mon Jul 21 17:09:07 2008 - - 1 Answers - 0 Comments
A. Change in real output: RGDP = 11'532.8 / 11'316.4 = 1.019122689 + 1.9% Nominal output rise due to increase in real output = = 13'008.4 * 1.019122689 = 13'257.16 Change in nominal output due to changes in price level = = 13'620.2 / 13'257.16 = 1.027384789 1.0274 + 2.74% So inflation between given periods was 2.74% Or direct method = = [ NGDP(2) / NDGP(1) ] x [ RGDP(1) / RDGP(2) ] = = [13'620.2 / 13'008.4 ] x [ 11'316.4 / 11'532.8] 1.0274 = +2.74%
Answered by Yuri - Mon Jul 21 17:19:34 2008
How do these situations reflect nominal and real interest rates?
Q. What happens to nominal and real interest rates for each of the following situations? a. The government needs money to fund a war. b. Private investors become more optimistic about the economy. c. The government raises taxes to reduce its deficit to zero.
Asked by Dirty Scientologist - Fri Feb 8 18:12:28 2008 - - 1 Answers - 1 Comments
A. a. The government needs money to fund a war. Wjen Govt. needs money to fund a war, it can raise the money by raising tax rates, borrowing from the public or printing fresh money. In taxes are raised, disposable income with the public goes down. Both consumption and savings fall as a result. Lower savings may lead to a rise in both nominal and real interest rates. But taxes may lead to higher prices, especially as the Govt. starts purchasing materials for the War. This may raise inflation rates and thereby lower the real interest rate. If the Govt. raises funds by borrowing from the market, the demand for loanable funds increase and therefore both the nominal and real interest rates rise. Again, Govt. spending would raise inflation and… [cont.]
Answered by sensekonomikx - Sat Feb 9 10:55:44 2008
Q. What happens to nominal and real interest rates for each of the following situations? a. The government needs money to fund a war. b. Private investors become more optimistic about the economy. c. The government raises taxes to reduce its deficit to zero.
Asked by Dirty Scientologist - Fri Feb 8 18:12:28 2008 - - 1 Answers - 1 Comments
A. a. The government needs money to fund a war. Wjen Govt. needs money to fund a war, it can raise the money by raising tax rates, borrowing from the public or printing fresh money. In taxes are raised, disposable income with the public goes down. Both consumption and savings fall as a result. Lower savings may lead to a rise in both nominal and real interest rates. But taxes may lead to higher prices, especially as the Govt. starts purchasing materials for the War. This may raise inflation rates and thereby lower the real interest rate. If the Govt. raises funds by borrowing from the market, the demand for loanable funds increase and therefore both the nominal and real interest rates rise. Again, Govt. spending would raise inflation and… [cont.]
Answered by sensekonomikx - Sat Feb 9 10:55:44 2008
What is the bond s nominal yield to call?
Q. 2.Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond s nominal yield to call?
Asked by Miss J - Wed Dec 2 13:18:50 2009 - - 1 Answers - 0 Comments
A. take the premium of $120 and assume it is paid over the 6 years to call calculate the current price based upon the 6.5% YTM in 15 years.
Answered by Robert M - Thu Dec 3 12:51:07 2009
Q. 2.Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bond s nominal yield to call?
Asked by Miss J - Wed Dec 2 13:18:50 2009 - - 1 Answers - 0 Comments
A. take the premium of $120 and assume it is paid over the 6 years to call calculate the current price based upon the 6.5% YTM in 15 years.
Answered by Robert M - Thu Dec 3 12:51:07 2009
what is nominal diameter of a screw and a nut?
Q. Can anyone please clear out the differences between major, minor, simple effective (pitch) and nominal diameter. I am really confused. If u give me a link to a photo than it will be great coz i have the definitions in my book but still not getting the concept.
Asked by Sahil - Sun Apr 11 10:36:46 2010 - - 1 Answers - 0 Comments
A. Nominal diameter the diameter equal to the external diameter of the threads. major diameter this is the diameter of an imaginary cylinder parallel with the crests of the thread; in other words it is the distance from crest to crest for an external thread, or root to root for an internal thread. minor diameter this is the diameter of an imaginary cylinder which just touches the roots of an external thread, or the crests of an internal thread. effective diameter this is the diameter of an imaginary cylinder coaxial with the thread, which has equal metal and space widths. It is often referred to as pitch diameter. Sometimes referred to as the simple effective diameter to differentiate from the virtual effective diameter. … [cont.]
Answered by Bert K - Sun Apr 11 12:56:16 2010
Q. Can anyone please clear out the differences between major, minor, simple effective (pitch) and nominal diameter. I am really confused. If u give me a link to a photo than it will be great coz i have the definitions in my book but still not getting the concept.
Asked by Sahil - Sun Apr 11 10:36:46 2010 - - 1 Answers - 0 Comments
A. Nominal diameter the diameter equal to the external diameter of the threads. major diameter this is the diameter of an imaginary cylinder parallel with the crests of the thread; in other words it is the distance from crest to crest for an external thread, or root to root for an internal thread. minor diameter this is the diameter of an imaginary cylinder which just touches the roots of an external thread, or the crests of an internal thread. effective diameter this is the diameter of an imaginary cylinder coaxial with the thread, which has equal metal and space widths. It is often referred to as pitch diameter. Sometimes referred to as the simple effective diameter to differentiate from the virtual effective diameter. … [cont.]
Answered by Bert K - Sun Apr 11 12:56:16 2010
How does aggregate spending and production decisions determine nominal GDP?
Q. How does aggregate spending and production decisions determine nominal GDP? Why and how has the recent decline in the leading economic index and consumer confidence changed the level and direction of nominal GDP?
Asked by aanalouei - Mon Feb 11 12:53:57 2008 - - 1 Answers - 0 Comments
A. Hey! Do your own homework!! This is an exam remember?! hee hee.. busted.
Answered by Your Classmate - Tue Feb 12 17:35:22 2008
Q. How does aggregate spending and production decisions determine nominal GDP? Why and how has the recent decline in the leading economic index and consumer confidence changed the level and direction of nominal GDP?
Asked by aanalouei - Mon Feb 11 12:53:57 2008 - - 1 Answers - 0 Comments
A. Hey! Do your own homework!! This is an exam remember?! hee hee.. busted.
Answered by Your Classmate - Tue Feb 12 17:35:22 2008
what is the difference between nominal price and real price of a commodity?
Q. Is "real price" the price that it costs the company to manufacture the good/provide service and the "nominal price" is the selling price?
Asked by sheyonze - Tue Jun 22 07:07:52 2010 - - 0 Answers - 0 Comments
A. No it is not. I deal in commodities and I have never even heard of a distinction of real price vs. nominal price of any commodity. What type of commodity are you talking about?
Answered by cactusgene - Fri Jun 25 18:39:50 2010
Q. Is "real price" the price that it costs the company to manufacture the good/provide service and the "nominal price" is the selling price?
Asked by sheyonze - Tue Jun 22 07:07:52 2010 - - 0 Answers - 0 Comments
A. No it is not. I deal in commodities and I have never even heard of a distinction of real price vs. nominal price of any commodity. What type of commodity are you talking about?
Answered by cactusgene - Fri Jun 25 18:39:50 2010
what is the difference between nominal interest rate and the real interest rate?
Q. what is the difference between nominal interest rate and the real interest rate and the expected inflation rate? i just dont get the difference. thank you!
Asked by gabster - Mon Nov 16 21:06:30 2009 - - 1 Answers - 0 Comments
A. nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates "as stated" without adjustment for the full effect of compounding (also referred to as the nominal annual rate). An interest rate is called nominal if the frequency of compounding (e.g. a month) is not identical to the basic time unit (normally a year). The "real interest rate" is approximately the nominal interest rate minus the inflation rate. Since the inflation rate over the course of a loan is not known initially, volatility in inflation represents a risk to both the lender and the borrower.
Answered by Meaow - Mon Nov 16 21:13:49 2009
Q. what is the difference between nominal interest rate and the real interest rate and the expected inflation rate? i just dont get the difference. thank you!
Asked by gabster - Mon Nov 16 21:06:30 2009 - - 1 Answers - 0 Comments
A. nominal interest rate or nominal rate of interest refers to the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates "as stated" without adjustment for the full effect of compounding (also referred to as the nominal annual rate). An interest rate is called nominal if the frequency of compounding (e.g. a month) is not identical to the basic time unit (normally a year). The "real interest rate" is approximately the nominal interest rate minus the inflation rate. Since the inflation rate over the course of a loan is not known initially, volatility in inflation represents a risk to both the lender and the borrower.
Answered by Meaow - Mon Nov 16 21:13:49 2009
Which of the following statements regarding the real and the nominal deficit is true?
Q. A. The real deficit depends on the government's expenditures and receipts only. B. The nominal deficit equals the real deficit adjusted for inflation's effect on the debt. C. The real deficit is the nominal deficit adjusted for inflation's effect on the debt. D. The real deficit has been adjusted for the effect of growth.
Asked by baltimorealexis85 - Sat Mar 8 21:41:15 2008 - - 1 Answers - 0 Comments
A. C. This is when the deficit is converted to the real price to pay.
Answered by Chris H - Sat Mar 8 21:53:44 2008
Q. A. The real deficit depends on the government's expenditures and receipts only. B. The nominal deficit equals the real deficit adjusted for inflation's effect on the debt. C. The real deficit is the nominal deficit adjusted for inflation's effect on the debt. D. The real deficit has been adjusted for the effect of growth.
Asked by baltimorealexis85 - Sat Mar 8 21:41:15 2008 - - 1 Answers - 0 Comments
A. C. This is when the deficit is converted to the real price to pay.
Answered by Chris H - Sat Mar 8 21:53:44 2008
what is the best way to remember nominal sentence in arabic?
Q. i always forget how make a nominal sentence in arabic can someone give me some tips so i can remember thank you
Asked by Abdullah - Tue Oct 13 16:10:36 2009 - - 1 Answers - 0 Comments
A. in arabic, there r two types of sentences: 1- Noun sentence: Consists of (a noun called "Mobtadaa") and another noun called "khabar", for example, The boy is clever. 2- Verb sentence: Consists of a verb, and who do the verb (called "fae'l"), for example, the boy has eaten.
Answered by Mawsoah - Wed Oct 14 15:02:08 2009
Q. i always forget how make a nominal sentence in arabic can someone give me some tips so i can remember thank you
Asked by Abdullah - Tue Oct 13 16:10:36 2009 - - 1 Answers - 0 Comments
A. in arabic, there r two types of sentences: 1- Noun sentence: Consists of (a noun called "Mobtadaa") and another noun called "khabar", for example, The boy is clever. 2- Verb sentence: Consists of a verb, and who do the verb (called "fae'l"), for example, the boy has eaten.
Answered by Mawsoah - Wed Oct 14 15:02:08 2009
How does inflation lead to an appreciation of a currency and what is a nominal appreciation?
Q. "The real appreciation of the currency, whether resulting from nominal appreciation or higher inflation, undermines competitiveness and leads to a deterioration of the current account balance."
Asked by Resident_Evil_5 - Tue Mar 17 23:10:41 2009 - - 1 Answers - 0 Comments
A. Inflation is the depreciation of currency.
Answered by psikeyhackr - Tue Mar 17 23:37:33 2009
Q. "The real appreciation of the currency, whether resulting from nominal appreciation or higher inflation, undermines competitiveness and leads to a deterioration of the current account balance."
Asked by Resident_Evil_5 - Tue Mar 17 23:10:41 2009 - - 1 Answers - 0 Comments
A. Inflation is the depreciation of currency.
Answered by psikeyhackr - Tue Mar 17 23:37:33 2009
Which cell phone service provider will provide me the best service at the most nominal charge?
Q. I am planning to pick up a new Palm Centro. This is my first cell phone and I m quite excited about owning one. I will use the phone mostly to receive calls. Which cell phone service provider will provide me the best service at the most nominal charge?
Asked by Florin J - Tue Oct 21 01:23:48 2008 - - 5 Answers - 2 Comments
A. You could actually choose a prepaid plan instead of a yearly contract. Most cell phone service providers like T-Mobile, Verizon and AT&T provide prepaid service using which you can use the cell phone service by payment of usage fee beforehand. It offers you the advantage of termination of service whenever you feel like without payment of any termination fee. Check out sites like for more details on service plans of various cell phone service providers.
Answered by Liz Arthur - Wed Oct 22 02:49:22 2008
Q. I am planning to pick up a new Palm Centro. This is my first cell phone and I m quite excited about owning one. I will use the phone mostly to receive calls. Which cell phone service provider will provide me the best service at the most nominal charge?
Asked by Florin J - Tue Oct 21 01:23:48 2008 - - 5 Answers - 2 Comments
A. You could actually choose a prepaid plan instead of a yearly contract. Most cell phone service providers like T-Mobile, Verizon and AT&T provide prepaid service using which you can use the cell phone service by payment of usage fee beforehand. It offers you the advantage of termination of service whenever you feel like without payment of any termination fee. Check out sites like for more details on service plans of various cell phone service providers.
Answered by Liz Arthur - Wed Oct 22 02:49:22 2008
Discuss the difference between REAL and NOMINAL GDP?
Q. Discuss the difference between REAL and nominal gdp. In determinig where economy is in the Business Cycle should we focus on REAL or nominal gdp?
Asked by Mira - Mon Dec 17 00:04:16 2007 - - 1 Answers - 0 Comments
A. A gross domestic product (GDP) figure that has not been adjusted for inflation. Also known as "current dollar GDP" or "chained dollar GDP". It can be misleading when inflation is not accounted for in the GDP figure because the GDP will appear higher than it actually is. If the nominal GDP figure has shot up 8% but inflation has been 4%, the real GDP has only increased 4%. Real GDP is a macroeconomic measure of the size of an economy adjusted for price changes and inflation. Real GDP for a given year is the given year's nominal GDP stated in the basep-year price level 2. Real GDP growth on an annual basis is the nominal and abnormal GDP growth rate adjusted for inflation and expressed as a percentage. Because Real GDP is adjusted for… [cont.]
Answered by sensekonomikx - Mon Dec 17 03:39:15 2007
Q. Discuss the difference between REAL and nominal gdp. In determinig where economy is in the Business Cycle should we focus on REAL or nominal gdp?
Asked by Mira - Mon Dec 17 00:04:16 2007 - - 1 Answers - 0 Comments
A. A gross domestic product (GDP) figure that has not been adjusted for inflation. Also known as "current dollar GDP" or "chained dollar GDP". It can be misleading when inflation is not accounted for in the GDP figure because the GDP will appear higher than it actually is. If the nominal GDP figure has shot up 8% but inflation has been 4%, the real GDP has only increased 4%. Real GDP is a macroeconomic measure of the size of an economy adjusted for price changes and inflation. Real GDP for a given year is the given year's nominal GDP stated in the basep-year price level 2. Real GDP growth on an annual basis is the nominal and abnormal GDP growth rate adjusted for inflation and expressed as a percentage. Because Real GDP is adjusted for… [cont.]
Answered by sensekonomikx - Mon Dec 17 03:39:15 2007
Are you worse off when price level and your nominal income rise at the same rate?
Q. Are you worse off when price level and your nominal income rise at the same rate? Why? by price level i think its meant inflation anyone know the answer to this?
Asked by Some Chick - Mon Jun 29 13:10:44 2009 - - 3 Answers - 0 Comments
A. The problem here, economically speaking is that salaries do not commensurate with the cost of living, and have not for decades. It has been decades since salary compensation took inflation into consideration with the American worker and tax payer. Personal income has remained stagnant since before 1990. Household income had raised by only 30%, but this considers two adults working to achieve this. Salaries are in fact on a rapid decline due to unemployment and jobs at a premium. Volatile stock market fluctuations and Global economic conditions have caused the American dollar to be worth less than ever before, making our trades less profitable for American markets. Currently, 42% of households contain two working adults. To put it into… [cont.]
Answered by Nicole B - Mon Jun 29 14:12:10 2009
Q. Are you worse off when price level and your nominal income rise at the same rate? Why? by price level i think its meant inflation anyone know the answer to this?
Asked by Some Chick - Mon Jun 29 13:10:44 2009 - - 3 Answers - 0 Comments
A. The problem here, economically speaking is that salaries do not commensurate with the cost of living, and have not for decades. It has been decades since salary compensation took inflation into consideration with the American worker and tax payer. Personal income has remained stagnant since before 1990. Household income had raised by only 30%, but this considers two adults working to achieve this. Salaries are in fact on a rapid decline due to unemployment and jobs at a premium. Volatile stock market fluctuations and Global economic conditions have caused the American dollar to be worth less than ever before, making our trades less profitable for American markets. Currently, 42% of households contain two working adults. To put it into… [cont.]
Answered by Nicole B - Mon Jun 29 14:12:10 2009
Can all or most of the english verbs carry Nominal clause as the objective clause?
Q. I understand verbs can be departed into transitive and in-transitive ones. However, what's the deep/real meaning of such classification? It's too complicated when you need to add objects to a intransitive verb, you have to add a preposition, e.g. of , before the verb. But another easy way is to use nominal clauses as the objects, as most of the verbs can carry them, am i right?
Asked by Jelly - Mon Apr 28 04:46:17 2008 - - 1 Answers - 0 Comments
A. You have several questions here. I shall tackle the first. The difference between transitive and intransitive verbs. An intransitive verb is an action verb, but it does not have a direct object. The action ends rather than being transferred to some person or object or is modified by an adverb or adverb phrase.. Typically, an adverb or prepositional phrase modifies an intransitive verb or the verb ends the sentence. To determine whether a verb is intransitive ask whether the action is done in some way, in some direction or to some degree. Does a noun receive the action of the verb? If it does, then the verb is transitive and the person or thing that receives its action is the direct object. [In the following examples, the… [cont.]
Answered by anigma - Mon Apr 28 05:16:09 2008
Q. I understand verbs can be departed into transitive and in-transitive ones. However, what's the deep/real meaning of such classification? It's too complicated when you need to add objects to a intransitive verb, you have to add a preposition, e.g. of , before the verb. But another easy way is to use nominal clauses as the objects, as most of the verbs can carry them, am i right?
Asked by Jelly - Mon Apr 28 04:46:17 2008 - - 1 Answers - 0 Comments
A. You have several questions here. I shall tackle the first. The difference between transitive and intransitive verbs. An intransitive verb is an action verb, but it does not have a direct object. The action ends rather than being transferred to some person or object or is modified by an adverb or adverb phrase.. Typically, an adverb or prepositional phrase modifies an intransitive verb or the verb ends the sentence. To determine whether a verb is intransitive ask whether the action is done in some way, in some direction or to some degree. Does a noun receive the action of the verb? If it does, then the verb is transitive and the person or thing that receives its action is the direct object. [In the following examples, the… [cont.]
Answered by anigma - Mon Apr 28 05:16:09 2008
How do you get either the GDP deflator and/or real GDP when the only given is nominal GDP and the CPI?
Q. i know that the deflator is equal to nominal over real. but neither real gdp nor gdp deflator is given. please help. Hi. I don't get how the Consumer Price Index got incorporated into the equation.
Asked by julie e - Wed Dec 2 09:53:47 2009 - - 1 Answers - 0 Comments
A. The CPI is going to give you the basis year, that way you can calculate in terms of 2008 dollars vs 2009 dollars vs 2010 dollars.. Here is an example: Nominal GDP Growth vs. Real GDP Growth GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example: Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the… [cont.]
Answered by Dan - Wed Dec 2 10:15:18 2009
Q. i know that the deflator is equal to nominal over real. but neither real gdp nor gdp deflator is given. please help. Hi. I don't get how the Consumer Price Index got incorporated into the equation.
Asked by julie e - Wed Dec 2 09:53:47 2009 - - 1 Answers - 0 Comments
A. The CPI is going to give you the basis year, that way you can calculate in terms of 2008 dollars vs 2009 dollars vs 2010 dollars.. Here is an example: Nominal GDP Growth vs. Real GDP Growth GDP, or Gross Domestic Product is the value of all the goods and services produced in a country. The Nominal Gross Domestic Product measures the value of all the goods and services produced expressed in current prices. On the other hand, Real Gross Domestic Product measures the value of all the goods and services produced expressed in the prices of some base year. An example: Suppose in the year 2000, the economy of a country produced $100 billion worth of goods and services based on year 2000 prices. Since we're using 2000 as a basis year, the… [cont.]
Answered by Dan - Wed Dec 2 10:15:18 2009
How does the reserve bank change nominal interest rates to INCREASE real interest rates?
Q. Stuck on an economics question... pls help Does the reserve bank need to increase nominal rates by more than the rate of inflation to increase REAL interest rates?
Asked by Jazmy - Tue May 19 00:41:42 2009 - - 2 Answers - 0 Comments
A. My economics textbook says that inflation tends to change relatively slowly. This means that if the Reserve Bank changes the nominal interest rate, the real interest rate will generally change by about the same amount in the short run. In the long run, the inflation rate and other economic variables would have adjusted so that the balance between savings and investment will determine the real interest rate (would be useful if I could insert the demand/supply model for savings here. On the X axis is savings and investment, and on the Y axis is the real interest rate. Where the demand curve (investment) and the supply curve (Savings) intersect, the corresponding value on the Y axis is the long run real interest rate) Hope that helped!.
Answered by Liz D - Tue May 19 06:54:28 2009
Q. Stuck on an economics question... pls help Does the reserve bank need to increase nominal rates by more than the rate of inflation to increase REAL interest rates?
Asked by Jazmy - Tue May 19 00:41:42 2009 - - 2 Answers - 0 Comments
A. My economics textbook says that inflation tends to change relatively slowly. This means that if the Reserve Bank changes the nominal interest rate, the real interest rate will generally change by about the same amount in the short run. In the long run, the inflation rate and other economic variables would have adjusted so that the balance between savings and investment will determine the real interest rate (would be useful if I could insert the demand/supply model for savings here. On the X axis is savings and investment, and on the Y axis is the real interest rate. Where the demand curve (investment) and the supply curve (Savings) intersect, the corresponding value on the Y axis is the long run real interest rate) Hope that helped!.
Answered by Liz D - Tue May 19 06:54:28 2009
How to calculate nominal interest rate for this question?
Q. How do I calculate the nominal interest rate for this question WITHOUT using a financial calculator? Compute the nominal annual rate of interest at which $350 paid at the end of every three months for six years accumulates to $12 239.76
Asked by Lindy - Wed Feb 4 22:57:53 2009 - - 1 Answers - 0 Comments
A. It is very hard to do without a financial calculator: I'm assuming that you are looking for the nominal interest rate compounded quarterly. So first you need to find j = effective quarterly interest rate. Then you can find the nominal interest rate = 4j. To find j, you need to solve the following equation: 350 * [(1+j)^24 - 1]/j = 12,239.76 There is no algebraic method to solve for j. The only way to get it without a financial calculator is by numerical approximation (i.e., Newton's Method). I strongly recommend that you get a financial calculator. The BA II Plus is a good calculator. That's what I used for my financial mathematics course. Please give me best answer if I helped you.
Answered by Math Wizard Level 23 - Fri Feb 6 00:30:15 2009
Q. How do I calculate the nominal interest rate for this question WITHOUT using a financial calculator? Compute the nominal annual rate of interest at which $350 paid at the end of every three months for six years accumulates to $12 239.76
Asked by Lindy - Wed Feb 4 22:57:53 2009 - - 1 Answers - 0 Comments
A. It is very hard to do without a financial calculator: I'm assuming that you are looking for the nominal interest rate compounded quarterly. So first you need to find j = effective quarterly interest rate. Then you can find the nominal interest rate = 4j. To find j, you need to solve the following equation: 350 * [(1+j)^24 - 1]/j = 12,239.76 There is no algebraic method to solve for j. The only way to get it without a financial calculator is by numerical approximation (i.e., Newton's Method). I strongly recommend that you get a financial calculator. The BA II Plus is a good calculator. That's what I used for my financial mathematics course. Please give me best answer if I helped you.
Answered by Math Wizard Level 23 - Fri Feb 6 00:30:15 2009
Nominal annual rate is given now how many yrs will it take to double my money!?
Q. Investing in a bank which has a nominal annula rate of 7.23 %, compounded annually. How many years will it take to double that amount of money?
Asked by jay g - Wed Aug 5 14:08:50 2009 - - 2 Answers - 0 Comments
A. to double your money use the rule of 80 80 divided by 7.23 means you will need about ten years
Answered by Jerrilyn15 - Wed Aug 5 14:14:08 2009
Q. Investing in a bank which has a nominal annula rate of 7.23 %, compounded annually. How many years will it take to double that amount of money?
Asked by jay g - Wed Aug 5 14:08:50 2009 - - 2 Answers - 0 Comments
A. to double your money use the rule of 80 80 divided by 7.23 means you will need about ten years
Answered by Jerrilyn15 - Wed Aug 5 14:14:08 2009
From Yahoo Answer Search: 'nominal'
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... are helping to shift the balance of power in society, away from those with nominal power and money and towards people who emerge from the grassroots. ...
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that five Green zone measurements are required to pass and also to indicate a failure on the first Yellow or Red zone measurement so the operator does not make any more units Sample 1 in Row 27 is a successful qualification or setup run of five measurements in the Green zone Sample 2 is an acceptable two unit sample Sample 3 fails because both measurements are
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hu, 06 May 2010 10:45:05 GM
How do I calculate the . nominal. interest rate on this question without using a finance calculator? Calculate the . nominal. annual interest rate payable on the end.
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