Questions from Macroeconomics

Q: Go to the Web site of the Japanese Ministry of Finance and

Go to the Web site of the Japanese Ministry of Finance and get the historical data about government bond yields. The data categorizes government bonds according to their maturity. a. Construct the yie...

Q: For which of the problems listed in parts a through c would

For which of the problems listed in parts a through c would you want to use real payments and real interest rates, and for which would you want to use nominal payments and nominal interest rates to co...

Q: The Consumer Price Index represents the average price of goods that households

The Consumer Price Index represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are represented as buying only fresh food...

Q: Compute the two-year nominal interest rate using the exact formula

Compute the two-year nominal interest rate using the exact formula and the approximation formula for each set of assumptions listed in parts a through c. The term premium on a two-year bond is 1%.

Q: The present value of an infinite stream of dollar payments of $

The present value of an infinite stream of dollar payments of $z (that starts next year) is $z/i when the nominal interest rate, i, is constant. This formula gives the price of a consol a bond paying...

Q: Assume the short-term real policy rate, current and expected

Assume the short-term real policy rate, current and expected, had been 2% until now. Suppose the Fed decides to tighten monetary policy and increase the short-term policy rate (r1t) from 2% to 3%. a....

Q: Suppose that an investor has a choice between buying a three-

Suppose that an investor has a choice between buying a three-year bond with a face value of $60 and a stock paying a constant dividend of $20 per year, which the investor plans to hold for three years...

Q: Houses can be thought of as assets with a fundamental value equal

Houses can be thought of as assets with a fundamental value equal to the expected present discounted value of their future real rents. a. Would you prefer to use real payments and real int...

Q: The Economist annually publishes The Economist House Price Index. It attempts

The Economist annually publishes The Economist House Price Index. It attempts to assess which housing markets, by country, are the most overvalued or undervalued relative to fundamentals. Find the mos...

Q: Using the information in this chapter, label each of the following

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. a. For a typical college student, human wealth and nonhuman wealth are approxi...