Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

10. Economic calculation is money partormingo through time and sp b) function of

ID: 1130413 • Letter: 1

Question

10. Economic calculation is money partormingo through time and sp b) function of a general medium of pay function of a common denominator of values d.) function of a store of value or 11. The Quantity Theory of Money aPphiles tudy of money a.) regression analysis to the money d.) prob a.) the pure rate, the debtors risk, inflationary price and liquidity premiums plus b.) the pure rate, the inflationary price premium, the liquidity premium nput-output analysis to the study of money supply analysis to the study of the economic good money. ability theory to the study of money. 12. The natural rate of interest is the sum of and consideration of the monetary policy actions by the central bank c) the nominal rate of interest and the inflationary price premium dthe pure rate, plus the debtors risk, inflationary price and liquidity premiums 13. The real rate of interest is equal to a.) the sum of three conceptual components: the pure rate, the debtors risk premium; and a positive or negative price premium. the nominal rate of interest less the inflationary price premium. c.) the pure rate of interest plus the inflationary price premium. d.) the nominal rate of interest less the debtors risk premium. 14. The pure rate of interest is determined in financial markets by: a) the valuation of time preference b.) abstracting away from debtors' risk and inflationary expectations. c.) the supply and demand for producers' goods. d.) none of the above. 15. In the midst of a severe plunge in economic activity, viz., a disintegration into an extreme disequilibrium, the debtors' risk premium component of the nominal rate of interest will: a.) remain the same height as before b.) decrease in height. c.) increase in height. d.) disappear When the inflationary price premium is attached to the sum of the pure rate of interest and the debtors' risk premium the nominal rate of interest increases in height. The attachment of the inflationary price premium is the result of the actions 16. both (would-be and actual) creditors and (would-be and actual) debtors. b.) (would-be and actual) creditors alone c.) (would-be and actual) debtors alone. d.) officials who enforce state and federal usury laws.

Explanation / Answer

10. Function of store of value.

11. Demand and supply analysis to the study of the economic good money.

12. D

13.the nominal rate of interest less inflationary price premium.