ECON 1015 Exam 2 Questions with Verified Answers Graded A+
CPI formula - Answers CPI= (Expenditures in current year/expenditures in base year) X 100
Inflation Rate forumla - Answers (Price Index(t)- Price Index(t-1)/(Price index(t-1)) X 100
GDP Deflator - Answers Nominal GDP/ Real GDP) X 100
Value in X dollars formula - Answers Value in X dollars= Value in Y dollars X (Value in X
dollars/Value in Y dollars)
Real Interest Rate formula - Answers Nominal Interest- Inflation Rate
Real GDP growth rate formula - Answers (Real GDP (t)- Real GDP (t-1)/ (Real GDP (t-1)) X 100
Formula for GDP in closed economy - Answers There are no imports or exports
Y= C+I+G
Investment Formula - Answers I= Y-C-G
S(private) PRIVATE SAVING formula - Answers Y+TR-C-T
S(public) - Answers T-G-TR
Total Saving (S) formula - Answers S(private) + S (public) or
S= Y-C-G or
S=I
Nominal Interest rate formula - Answers New-Old)/ (old) X 100
Coupon Rate Formula (interest payments) - Answers Face value/interest rate
Present Value formula - Answers Future Value/ (1+interest)
Bond Price formula - Answers (Coupon1)/(1+i) + (Coupon2)/(1+i)^2)...+....+ (Face Value)/(1+i)^n
Stock Price formula - Answers Dividend(1)/(1+i) +(Dividend(2)/ (1+i)^2+....
Stock Price formula (if dividends grow at constant rate) - Answers Dividend/ (i-Growth Rate)
Earning of share formula - Answers Retained earning of share + dividends of share
Price-earning ratio - Answers price of stock/earning of share
The dividend yield - Answers dividend per share/price of stock
After tax rate of interest rate - Answers after tax nominal interest- inflation
CPI formula - Answers CPI= (Expenditures in current year/expenditures in base year) X 100
Inflation Rate forumla - Answers (Price Index(t)- Price Index(t-1)/(Price index(t-1)) X 100
GDP Deflator - Answers Nominal GDP/ Real GDP) X 100
Value in X dollars formula - Answers Value in X dollars= Value in Y dollars X (Value in X
dollars/Value in Y dollars)
Real Interest Rate formula - Answers Nominal Interest- Inflation Rate
Real GDP growth rate formula - Answers (Real GDP (t)- Real GDP (t-1)/ (Real GDP (t-1)) X 100
Formula for GDP in closed economy - Answers There are no imports or exports
Y= C+I+G
Investment Formula - Answers I= Y-C-G
S(private) PRIVATE SAVING formula - Answers Y+TR-C-T
S(public) - Answers T-G-TR
Total Saving (S) formula - Answers S(private) + S (public) or
S= Y-C-G or
S=I
Nominal Interest rate formula - Answers New-Old)/ (old) X 100
Coupon Rate Formula (interest payments) - Answers Face value/interest rate
Present Value formula - Answers Future Value/ (1+interest)
Bond Price formula - Answers (Coupon1)/(1+i) + (Coupon2)/(1+i)^2)...+....+ (Face Value)/(1+i)^n
Stock Price formula - Answers Dividend(1)/(1+i) +(Dividend(2)/ (1+i)^2+....
Stock Price formula (if dividends grow at constant rate) - Answers Dividend/ (i-Growth Rate)
Earning of share formula - Answers Retained earning of share + dividends of share
Price-earning ratio - Answers price of stock/earning of share
The dividend yield - Answers dividend per share/price of stock
After tax rate of interest rate - Answers after tax nominal interest- inflation
