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Other things remain constant if the expected inflation rate decreases and investors also become more risk averse the security market line would shift?
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∙ 16y ago
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∙ 16y ago
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What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
What is nominal interest rate minus the expected rate of inflation?
The expected real interest rate.
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
What is the difference between expected inflation and inflation how does changing inflation expections affect short run philpse curve?
The first answer is self-explanatory. If consumers THINK a good will go up in price, then that good has a high expected inflation. Whether or not it actually does is it's actual inflation.This matters in the Phillips Curve mainly when dealing with businesses. Basically, if a business thinks it's costs are going to increase (inflation), it might not hire more people or might even lay people off to save money. Thus, as expected inflation rises, unemployment rises, just like the Curve says it would.
What is the expected inflation over the next 5 years?
the expected inflation over the next 5 years is sex.
The one year nominal interest rate is 7.97 and the real interest rate is 3.54 what is the expected inflation rate?
The expected inflation rate is 11.51%
What are the four factors of PE?
Expected growth of earnings, expected stability of earnings, expected inflation, and yields of competing investments.
What is nominal interest rate minus the expected rate of inflation?
The expected real interest rate.
What is likely to happen to yield to maturity on bonds in the marketplace if inflationary expectations increase?
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
What happens to the expected value of M as sample size increases?
Decreases
What is the difference between expected inflation and inflation how does changing inflation expections affect short run philpse curve?
The first answer is self-explanatory. If consumers THINK a good will go up in price, then that good has a high expected inflation. Whether or not it actually does is it's actual inflation.This matters in the Phillips Curve mainly when dealing with businesses. Basically, if a business thinks it's costs are going to increase (inflation), it might not hire more people or might even lay people off to save money. Thus, as expected inflation rises, unemployment rises, just like the Curve says it would.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
If the price component decreases the demand curve for Cd is would be expected to?
increase
Why 'G'is called universal gravitational constant?
Gravitational because it is related to gravity; universal because it is expected to apply everywhere; constant because it is expected to be the same everywhere.
How do foreign investors who invest in Nigeria and Ghana deal with currency devaluation and inflation risks?
Investors often include foreign or international bonds in their portfolios for a few primary reasons – to take advantage of higher interest rates or yields and to diversify their holdings. However, the higher return expected from investing in foreign bonds is accompanied by increased risk arising from adverse currency fluctuations.
What is south Africa's curent inflation rate?
The current inflation percentage at end of second quarter (June 2009) is 7.3%. However this is expected to diminish to approximately 7.1% in the third quarter.
