0
Should the real GDP rate of growth be higher than the nominal GDP growth?
Wiki User
∙ 12y ago
no
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Suppose a borrower and lender agree on the nominal interest rate to be paid on a loan and the inflation turns out to be higher than they expected Is the real interest rate on this loan higher?
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
Why would an assessment of growth using nominal GDP be misguided?
Because it does not include the interest rate.
Why nominal GDP data has to be adjusted before the rate of economic growth can be calculated?
For more accuracy
What indicators does not measure economic growth?
Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.
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.
Suppose a borrower and lender agree on the nominal interest rate to be paid on a loan and the inflation turns out to be higher than they expected Is the real interest rate on this loan higher?
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
Why would an assessment of growth using nominal GDP be misguided?
Because it does not include the interest rate.
Why nominal GDP data has to be adjusted before the rate of economic growth can be calculated?
For more accuracy
What indicators does not measure economic growth?
Economic growth can be measured in nominal terms, which include inflation. The growth of an economy is thought of not only as an increase in productive.
You nominal rate the same as true rate?
No. Nominal interest rate is the rate before adjustments for inflation.
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.
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.
What is supernormal growth rate?
super normal growth rate is that growth rate which is not constant growth rate. it is flexible growth rate. it means some years or period growth rate is higher than other period. when it is gone constant growth rate certain period and than changed the growth rate, it is called super normal growth rate. some example, we can take here. company x has expected dividend per share is Rs 10. its growth rate is 5 % per year, for next 3 years. and than its growth rate should be changed 10 %. it is the example of super normal growth rate. here, first 3 years has normal growth rate is constant 5% and than it is change by increasing to 10%. here super normal growth rate is start from end of year 3.
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.
Are CNA jobs growing at a faster rate than job growth in general?
CNA jobs have a very fast job growth rate. Job growth in general will always be higher due to the higher quantities of other jobs.
What is the cause of rapid growth population in the Philippines?
birth rate is higher than death rate
What exists when the death rate is higher than the birth rate?
A negative population growth exists
