--%>
Assignment Help - homework help

Define Real Rate of Interest

Define Real Rate of Interest in Economics?

E

Expert

Verified

Real Rate of Interest:

• The real rate of interest differs with business cycle, with the maximum rates seen at the end of a period of business growth and the minimum at the bottom of recession.

• Modifications in the predictable future real rate of interest can influence the slope of the yield curve.

   Related Questions in Microeconomics

  • Q : Proprietorships and

    Can someone please help me in finding out the accurate answer from the following question. The sole proprietorship owned and executed by the lone individual is at a drawback whenever compared to the corporation since it lacks relatively: (i) Flexible legal options reg

    		•
  • Q : Competitive Markets and Labor unions I

    I have a problem in economics on Competitive Markets-Labor unions. Please help me in the following question. The purely competitive labor markets are not characterized through: (1) Most of the individual buyers and sellers of the labor services. (2) S

    		•
  • Q : Slope of demand curve for negative

    The slope of this illustrated graph demand curve for DVD games equivalents negative: (w) 0.2. (x) 0.50. (y) 5.0. (z) 2.0. 313_Price El</span></p> </div> <!-- /comment-box --> </li> </td> </tr><tr> <td> <li> <div class=

    Q : Close down a purely competitive firm in

    Within the short run, there a purely competitive firm will close down its plant(s) and manufacture nothing when: (i) this makes no pure economic profits. (ii) normal profits were unattainable. (iii) P < ATC at all output levels. (iv) accounting pro

    		•
  • Q : Most effective excise taxes during

    Excise taxes upon cigarettes are most effective during reducing: (1) smokers' discretionary income for other goods. (2) cigarette production. (3) cigarette companies' profits. (4) consumption of snuff and chewing tobacco.

    Q : Problem regarding Bilateral Monopoly

    The Bilateral monopoly models would be most suitably employed to analyze the negotiations among: (1) Le-Bron James, an all-star NBA basketball player and the Cleveland Cavaliers. (2) A newly hired clerk at Wal-Mart and the Wal-Mart Human Resources Dep

    		•
  • Q : Demand of Substitute Goods I have a

    I have a problem in economics on Demand of Substitute Goods. Please help me in the following question. All as well equivalent, raised prices for a new Toyotas will most instantly rise the: (1) Price cuts essential for ‘lemons’ to be sold b

    		•
  • Q : Bonding of Paying in Investment When

    When the price of a financial asset is $1,000 and the interest rate is 10 percent, in that case investment is not justified for: (1) a perpetuity paying $100 annually. (2) an income stream paying $500, $400, and $300, respectively, at the ends of all

    		•
  • Q : Approximate unitary price elasticity of

    Nostalgia Corporation’s output of “Silver Screen Classic” DVDs consequent to the point where demand has unitary price elasticity is approximately: (1) 3 million copies. (2) 4 million copies. (3) 5 million copies. (4) 6.5 million copi

    		•
  • Q : Price elasticity of supply of commodity

    Determine the price elasticity of supply of a commodity whose straight line supply curve passes via the origin forming an angle of 45 degree/75 degree? Answer: Unit

    		•