Answer Happy

Canvas mployment & Inflation Multiple Choice They will charge an "inflation tax." They will charge an "inflation premium." Saved If bankers expect future inflation, then our book told us that they will do something on loans they are offering now. What will they do? They will charge an "Foreign Currency Inflation" surcharge. None of the above. 30 20 m Help Next. Save & Exit Submit Check my work

Canvas mployment & Inflation. Multiple Choice Seved Nominal Rate less tax adjusted rate Real Rate of Return. If you go on the Internet today it will be very easy to find countries like Greece, Iran and Zimbabwe offering high rates of return on government bonds. For example, during 2017 Greece was offering rates of 25 percent of their government bonds. Obviously high rates of return also equal high risk. How would you go about calculating the "real rate of return" according to Chapter 97 (Hint: Mentioned toward the end of the Part II audio-visual lecture). Nominal Rate less Inflation Rate less Taxes Owed on Interest - Real Rate of Return. Nominal Rate less Currency Float less Taxes Owed - Real Rate of Return. None of the above. Prau 21 of 30. 111 Help Next > Save & Exit Submi Check my work

mployment & Inflation i According to Chapter 9 what is a negative interest rate? Multiple Choice Seved O This happens when banks are offering very very high rates of return on savings. This happens when banks offer less than 1% but not below 0%. O This happens when banks offer savings rates below 0%. So if a bank is offering -1.00 %, then this means that they will deduct 1 percent from your account and keep it. The purpose of negative interest rate to discourage savings and encourage spending. Chapter 9 said that only the Mafia offers negative interest rates. < Prev 22 of 30 Help Next > Save & Exit Submit Check my work

Canvas mployment & Inflation i What is a Cost of Living Adjustments (COLA)? Multiple Choice O O A. Simple it is just a bottle of Coca-Cola. Saved Workers are given this by their employers and they will get an increase in their base salary if the Consumer Price Index (CPI) goes up. This protects the base salary purchasing power. This stands for the Consumer Office of Lending Agency (COLA). Help This is a special type of inflation when the prices of investments go up. Save & Exit Subm Check my work

mployment & Inflation. What is Cost-Push Inflation according to Chapter 97 Multiple Choice O Seved This happens when too much money is printed. This happens when there are sudden disruptions to the production supply chain that creates shortages of key items needed by the economy. For example, during the 1973-1974 Arab Oil Embargo against the U.S. and during the 1979-1980 Iranian Oil Embargo also against the U.S., this caused inflation because since oil was in short supply, the cost and prices of everything related to energy went up. Theoretically, a horrible natural disaster like Yellowstone volcano exploding in the central U.S. could also cause a Cost-Push shock situation. This is simple greed whenever the executives of firms arbitrarily rate their prices to astronomical levels. This can happen if the national currency value goes up. < Prev 24 of 30 Help Save & Exit Next > Subm Check my work