Points Earned 303 Correct Answers C 25 The ex ante real rate of interest

# Points earned 303 correct answers c 25 the ex ante

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Points Earned: 3.0/3. 0 Correct Answer(s): C 25.The ex-ante real rate of interest between June 2008 and June 2009 is: A) 1.19%B) -2.68%C) -1.23%D) 3.65%Feedback: 2.42-5.1 = -2.68% Points Earned: 3.0/3. 0 Correct Answer(s): B 26.The ex-post real rate of interest between June 2008 and June 2009 is: Points Earned: 3.0/3. 0
Correct Answer(s): D 27.We know that most decisions are in part, based on expectations of the future. Suppose we have two people who are trying to decide whether to consume today (assume it is currently June 2008) or save for the future and consume one year later, in June 2009. One person, let's call him Joe, is basing his decision on the ex-ante real rate of interest like most of us do.The other person who has a crystal ball, we'll call her Crystal, can see exactly what the actual rate of inflation is going to be and thus, has perfect foresight and bases her decision on the ex-post real rate. Look at the difference in the ex-ante and ex-post real rates you calculated in #25 and #26 above. Who would be more likely to save and who would be morelikely to spend? Points Earned: 3.0/3. 0 Correct Answer(s): A 28.Use the information in "Study shows costs of living for working families leveling off in Pa." to answer questions 28 – 31.
Using Allegheny county as the base county, the price index in Centre county is: Points Earned: 3.0/3. 0 Correct Answer(s): C

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