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ASU ECN 211 Exam 3 Formulas Graded A+

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ASU ECN 211 Exam 3 Formulas Graded A+

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ASU ECN 211 Exam 3 Formulas Graded
A+

Real Interest Rate Formula - Correct answer-real interest rate = nominal interest

rate - inflation rate

Nominal Interest Rate - Correct answer-nominal interest rate = inflation rate + real

interest rate

After Tax Nominal Interest Rate Formula - Correct answer-after-tax nominal

interest rate = nominal interest rate (1-tax rate)

After Tax Real Interest Rate Formula - Correct answer-after tax nominal interest

rate - inflation rate

Marginal Propensity to Consume (MPC) - Correct answer-Change in Consumption

divided by changing in income




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