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gulaghasi [49]
2 years ago
13

If the nominal interest rate is 4 percent and the inflation rate is 6 percent, then the real interest rate is a.-4 percent. b.-2

percent. c.0 percent. d.2 percent.
Business
1 answer:
marta [7]2 years ago
7 0

The real interest rate given the nominal and inflation rate is -2 percent

<h3>How to calculate the real interest</h3>

The formula for calculating real interest given the nominal and inflation rate is expressed as:

Real interest rate ≈ nominal interest rate − inflation rate

Given the following

Real interest = 4%

inflation rate = 6%

Substituting into the formula

Real interest rate = 4% -  6%

Real interest rate = -2%

Then the real interest rate given the nominal and inflation rate is -2 percent

Learn more on real interest here: brainly.com/question/25545513

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Did you receive less than 21 weeks of an unemployment insurance benefit payment for weeks between march 15, 2020, and june 26, 2
Galina-37 [17]

It is a true statement that people receive an unemployment insurance benefit payment for more than 21 weeks.

<h3>What is an unemployment insurance benefit payment?</h3>

This is a benefit that provide a temporary financial assistance to the unemployed workers who meet the requirements of State law.

In most states, the workers are eligible for up to 26 weeks of benefits from the regular state-funded unemployment compensation program.

Therefore, It is a true statement that people receive an unemployment insurance benefit payment for more than 21 weeks.

Read more about insurance benefit

<em>brainly.com/question/23586929</em>

#SPJ1

7 0
2 years ago
You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this
lana66690 [7]

Answer:

Total fixed costs  = $6,800

b. Total variable cost = $2,775

c.  = $0.48 per mile

2. iii variable costs, because they can be avoided.

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

Depreciation + Insurance + cost of registration

Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800

Insurance = 960 x 2 = 1920

Total fixed cost = 4,800 + 1920 + 80  = $6,800

Total variable cost

Gasoline + Service + Oil change + tire replacement

Gasoline = 10,000/ 50 = 2000 x 2.5 x 2 = 1000

= (1000 + (240 * 5) + (35 * 5) + 400

= 1,000 + 1,200 + 175 + 400  = $2,775

Total cost / Number of miles

= (6,800 + 2,775) / (10,000 * 2 years)

= $0.48 per mile

6 0
3 years ago
The items in a budget that can be estimated most accurately and easily are
Flauer [41]

fixed expenses ........... it makes sense          

4 0
3 years ago
Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs
Helen [10]

Answer:

The contribution  margin ratio is 35%

Explanation:

The formula for contribution is given below:

Contribution margin = revenue − variable costs.

Contribution margin ratio is given as:

(Sales – variable expenses) ÷ Sales

In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.

Contribution is $7000

contribution margin ratio =$7000/($20*1000)

                                         =0.35  or 35%

The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall

4 0
3 years ago
From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom
notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

4 0
3 years ago
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