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- Which of the following statement about inflation is incorrect a. A positive inflation rate reduces purchase power of dollars b. Excess money supply increases inflation c. A positive inflation rate increases the real interest rate d. A positive inflation rate lows the real interest rateExplain negative inflation premium.The _______ models the relationship between inflation rate, nominal return, and real return. Multiple Choice Interest Rate Parity. Put-Call Parity. Fisher Effect. Law of One Price. Purchasing Power Parity.
- Which one of the following is not the goals of Monetary policy? a. Low inflation O b. Low employment O c. Economic growth d. None e. Balance of Payment Clear my choice1. Credit spreads least likely depend on which of the following: A. Market supply B. Market demand C. Financial markets D. InflationWhat is negative inflation premium?
- 1._____________ is the rate at which the net present value becomes zero. a. None of the options b. Accounting rate of return c. Adjusted rate of return d. Internal rate of returnTrue or false explain a. For , when the spot price is the strike price, then the profit/loss will be equal to the spot price minus the minus the premium. b. For , when the spot price is the strike price, then the profit/loss will be equal to the strike price minus spot the price minus the .Using the AD-AS model, demonstrate the potential causes of inflation
- During a period of inflation, an account balance remains constant. With respect to this account, a purchasing power loss will be recognized if the account is a: a. Monetary asset b. Monetary liability c. Nonmonetary asset d. Nonmonetary liabilityA market rate of discount for a single payment to be made in the future is a forward rate. Select one: True False"Fisher effect defines the relationship between nominal rates, real rates, infiation, default premium, and maturity premium". Is the above statement TRUE? O A. Yes O B. No