The price of good X is higher in year 2 than in year 1 and people are buying more of good X in year 2 than year 1. Obviously, the law of demand does not hold. Do you agree or disagree? Explain your answer.
In: Economics
Between last year and this year, the CPI in Blueland rose from
100 to 115 and the CPI in Redland rose from 100 to 110. Blueland’s
currency unit, the blue, was worth $0.90 (U.S.) last year and is
worth $0.75 (U.S.) this year. Redland’s currency unit, the red, was
worth $0.60 (U.S.) last year and is worth $0.50 (U.S.) this year.
Consider Blueland as the home country.
a. Calculate Blueland’s nominal exchange rate with Redland
last year.
Instructions: Enter your response rounded to one
decimal place.
red/blue.
b. Calculate Blueland’s nominal exchange rate with Redland
this year.
Instructions: Enter your response rounded to one
decimal place.
red/blue.
c. Calculate the percentage change in Blueland’s nominal exchange
rate from last year to this year.
Instructions: Enter your response as an integer
value. Be certain to enter "0" if required.
%.
d. Calculate Blueland’s real exchange rate with Redland
last year.
Instructions: Enter your response rounded to one
decimal place.
red/blue.
e. Calculate Blueland’s real exchange rate with Redland
this year.
Instructions: Enter your response rounded to three
decimal places.
red/blue.
f. Calculate the percentage change in Blueland’s real exchange rate
with Redland.
Instructions: Enter your response rounded to three
decimal places.
%.
g. Relative to Redland, you expect Blueland’s exports to be (Click
to select)helpedhurtunaffected by these changes in exchange
rates.
In: Economics
In a hypothetical world, between last year and this year, the
CPI in Mexico rose from 100 to 115 and the CPI in Russia rose from
85 to 100. Mexico's currency unit, the Peso(MXN), was worth
8.81(MXN) per Canadian dollar last year and is worth 8.73(MXN) per
Canadian dollar this year. Russia's currency unit, the Ruble(RUB),
was worth 23.28(RUB) per Canadian dollar last year and is worth
23.14(RUB) per Canadian dollar this year.
a) Find the percentage change from last year to
this year in Mexico's nominal exchange rate with Russia
(measured as # of Pesos/1 Russia Ruble).
NOTE: Please keep as much precision as possible
throughout your calculations and round off your final answer to
two decimal places.
Percentage change = 0%
b) Find the percentage change from last year to
this year in Mexico's real exchange rate with Russia.
Again, assume that we are measuring the nominal exchange rate
portion as the # of Pesos/1 Russia Ruble.
NOTE: Please keep as much precision as possible
throughout your calculations and round off your final answer to
two decimal places.
Percentage change = 0%
| c) | Relative to Russia, do you expect Mexico's exports to be helped
or hurt by these changes in exchange rates?
|
In: Economics
4. The CPI in year 1 = 120, the CPI in Year 2 = 144. Calculate the amount of inflation or deflation. Why is this important?
In: Economics
A student applied for NLSPS to pay for his tuition in year 2, year 3 and year 4 of his undergraduate study. The tuition fee is $74,000 per year. Assuming the annual interest rate and the study interest rate are both 1.1132%, calculate the monthly installment amount to pay off the dent in 120 months after graduation.
Need formula and answer only. Thanks.
In: Economics
Design and Write a program that asks for a 4-digit year and determines whether that year is a leap year or not.
This should work for any year from 1700 to 2022. Anything not completely obvious to a newbie must use # notes on lines to explain. Must be modularized and repeatable. Should have an invocation of the main routine at the end of the program.
Must have Flowgorithm and Python code.
In: Computer Science
An investor in Treasury securities expects inflation to be 2.5% in Year 1, 3.4% in Year 2, and 4.35% each year thereafter. Assume that the real risk-free rate is 2.15% and that this rate will remain constant. Three-year Treasury securities yield 6.25%, while 5-year Treasury securities yield 8.15%. What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5 - MRP3? Do not round intermediate calculations. Round your answer to two decimal places.
%
In: Finance
Suppose the inflation rate is expected to be 6% next year, 4% the following year, and 2.15% thereafter. Assume that the real risk-free rate, r*, will remain at 2.45% and that maturity risk premiums on Treasury securities rise from zero on very short-term bonds (those that mature in a few days) to 0.2% for 1-year securities. Furthermore, maturity risk premiums increase 0.2% for each year to maturity, up to a limit of 1.0% on 5-year or longer-term T-bonds.
Calculate the interest rate on 2-year
Treasury securities. Round your answer to two decimal places.
________ %
Calculate the interest rate on 3-year
Treasury securities. Round your answer to two decimal places.
________ %
Calculate the interest rate on 4-year
Treasury securities. Round your answer to two decimal places.
________ %
Calculate the interest rate on 5-year
Treasury securities. Round your answer to two decimal places.
________ %
Calculate the interest rate on 10-year
Treasury securities. Round your answer to two decimal places.
________ %
Calculate the interest rate on 20-year
Treasury securities. Round your answer to two decimal places.
________ %
Select the correct yield curve based on these data.
In: Finance
A 30-year loan of 1100 is repaid with payments at the end of each year.
Each of the first fifteen payments equals 155% of the amount of interest due. Each of the last fifteen payments is X.
The lender charges interest at an annual effective rate of 8%. Calculate X
a. 57
b. 65
c. 77
d. 82
e. 46
In: Finance
the price of a one-year pure discount bond is 96.15 and the price of a two-year pure discount bond is 92.63. what rate on a one year bond, one year from today, could you lick in today?
In: Finance