1. A country\'s nominal GDP in 2017 was $102 billion. The real GDP was $92 billi
ID: 1142786 • Letter: 1
Question
1. A country's nominal GDP in 2017 was $102 billion. The real GDP was $92 billion. 2. A country's 3. What is the present value of $400 to be paid in 3 years if the interest rate is 12%? 2841, Calculate the GDP deflator. s GDP deflator in 2017 was 114. The GDP deflator in 2016 was 110. Calculate the 2017 inflation rate using the GDP deflator. 4. What is the yield to maturity on a bond that has a price of $1880 and pays $90 of interest 5. 6 What is the real interest rate if the nominal interest rate is 6% and the expected inflation 7. In your own words, explain the difference between the interest rate and the return on an 8. The demand for one-year discount bonds with a $1000 face value is given by P 1000- annually, forever? What is the yield to maturity on a one-year, $2000 Treasury bill with a current price of $1900? rate is 4% over the course of a year? asset. 2B, where P is the bond price and B is the number of the bonds demanded. The supply of the bonds is given by P- 700+3B. Find the equilibrium 100-800138 a. price of the bond Pe; b. quantity B of the bonds bought & sold; c. interest rate (yield to maturity) BP The Bank of Canada has decided to sell 10 more bonds with a $1000 face value at whatever price the market pays, in the market described in question 8 above. Find the equilibrium 9. price of the bond P*; a. b. quantity B* of the bonds bought & sold; c. interest rate (yield to maturity) i 10. Explain in words, what happens in the market for bonds when the Bank of Canada decides to sell 10 more bonds-does the demand for bonds or supply of bonds change, in what direction (increases or decreases), and what is the effect on the bond price and interest rate? From the same Bank of Canada's action (selling 10 more bonds) what happens in the market for money- does the demand for money or supply of money change, in what direction (increases or decreases), and what is the effect on the interest rate?Explanation / Answer
1.
GDP Deflator
=Nominal GDP/Real GDP*100
=102/92*100
=110.87
the above is answer..
we do only one question based on Chegg rule
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