Suppose the announcement of a new head of the central bank, with a reputation as a tough inflation fighter, reduces expected inflation by 2.0 percentage points. According to the Fisher effect, what is the new nominal interest rate
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Ответ:
The new nominal interest rate will also reduce by 2.0 percentage points in line with the reduction in the expected inflation.
Explanation:
According to the Fisher effect, nominal interest rate = real interest rate + expected rate of inflation. From this formula, any reduction in the expected rate of inflation will also have equal effect on the nominal interest rate. The Fisher effect shows that any monetary supply influence on the inflation rate also affects the nominal interest rate equally.
Ответ:
$30,400
Explanation:
Accounts with credit balances are revenue, liabilities and stock or equity.
The credit balances above are:
Accounts payable, Notes payable, common stock, revenues,= 2,800 + 4,200 + 1,400 + 22,000
= $30,400