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Does an interest rate change cause a movement along or a shift in the consumption function?
Yes. lower interest rate causes more people and companies to borrow money, which leads to increased consumtion.
What does the nominal interest rate mean?
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
How does the real interest rate relate to the nominal interest rate?
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
What does effective interest rate mean?
An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate.
What is nominal interest rate minus the expected rate of inflation?
The expected real interest rate.
What has the author Joseph Massie written?
Joseph Massie has written: 'An essay on the governing causes of the natural rate of interest' -- subject(s): Interest rates 'Joseph Massie on the natural rate of interest, 1750' -- subject(s): Interest and usury
Does a judgment lien against a property have interest?
Yes. Interest continues to accrue until the judgment is paid. That causes the debt to grow. In Massachusetts that interest rate is 12%.
Does an interest rate change cause a movement along or a shift in the consumption function?
Yes. lower interest rate causes more people and companies to borrow money, which leads to increased consumtion.
What is nominal interest?
Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
Does the president has the authority to set interest rates?
The President approves laws. The President does not create laws. The US Federal Reserve sets the interest rate.
What does the nominal interest rate mean?
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
How does the real interest rate relate to the nominal interest rate?
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
What is the formula to calculate monthly interest rate if the annual interest rate is known?
Annual Interest Rate divided by 12= Monthly Interest Rate
What does nominal interest rates means?
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
How do you convert annual interest rate to monthly?
Let i = annual rate of interest. Then i' = ((1+i )^(1/12))-1 Where i' = monthly rate of interest
What is the Formula for simple interest rate?
The answer for rate in simple interest is =rate= simple interest\principle*time
What does effective interest rate mean?
An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate.
