The following table contains summary data for the G8 economies from the March 16

Question

The following table contains summary data for the G8 economies from the March 16, 2016 issue of The Economist. Consumer Nominal PricesRate of %Change Interest Country Canada France Germany Italy Japan Russia United Kingdom United States 0.81 -0.23 0.23 0.23 0.0 12.51 0.57 0.64 2.0 0.2 0.0 0.3 8.1 Based on these data, the members of the G8 with negative real interest rates in the spring of 2016 include (Check all that apply.) B. France A. Canada c. Germany E. Japan G. United Kingdom D. Italy F. Russia H. United States

Explanation / Answer

Ans) the correct options are A, B, C, D,G,H

Real interest rate = Nominal interest rate - percentage change in prices

Canada = 0.81- 2.0= -1.19

France = -0.23 - (-0.2)= -0.03

Germany = -0.23 - 0.0= -0.23

Italy = -0.23 - 0.3= -0.53

Japan = 0.0 - (-0.1)= 0.1

Russia = 12.51 - 8.1 = 4.41

United Kingdom = 0.57 - 0.3 = -0.27

United States = 0.64 - 1.4 = -0.76

Except Japan and Russia all other countries have negative real interest rate

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.