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1 year ago

If real economic growth is 3%, the inflation rate is 5%, and the nominal interest rate is 7%, then the real rate of interest is:

Business

1 answer:

Elanso [62]1 year ago

3 0

Based on the information given the real rate of interest is:2%.

<h3>Real rate of interest</h3>

Using this formula

Real rate of interest=Nominal interest rate-Inflation rate-

Where:

Inflation rate=5%

Nominal interest rate=7%

Let plug in the formula

Real rate of interest=7%-5%

Real rate of interest=2%

Inconclusion the real rate of interest is:2%.

Learn more about real rate of interest here:brainly.com/question/25877453

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The purchase of inventory for cash will cause the current ratio to decrease. true false

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I think it is false hopefully it is right

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2 years ago

On January 1, 2020, Novak Corp. had inventory of $56,500. At December 31, 2020, Novak had the following account balances.

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Answer:

Gross Profit ⇒ $296,500

Operating expenses ⇒ $153,500

Explanation:

Gross Profit;

= Net sales - Cost of Goods sold

Net sales = Sales revenue - sales discounts - sales returns and allowances

= 807,000 - 6,000 - 10,900

= $790,100

Cost of Goods sold

= Opening balance + Purchases + Freight-in - Purchase discounts - Purchase returns and allowances -closing balance

= 56,500 + 509,500 + 4,800 - 8,000 - 2,700 - 66,500

= $493,600

Gross Profit = 790,100 - 493,600

= $296,500

Operating Expense

Net Income = Gross profit - operating expenses

143,000 = 296,500 - operating expenses

Operating expenses = 296,500 - 143,000

= $153,500

6 0

1 year ago

Simone is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work an

AlekseyPX

Answer:

Simone will be considered unemployed.

Explanation:

Simone is 26 years old, this means that she is in the adult population. She used to work as a copy editor for a newspaper. She has lost her job and is actively looking for work. She will be considered an unemployed person and will be included in the labor force.

Those workers who do not have a job currently but are actively looking for one are considered unemployed. Those who are without jobs but are not actively looking for one are considered discouraged workers and are not included in the labor force. The labor force includes only employed and unemployed workers.

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2 years ago

A business entity operated and taxed like a partnership, but with limited liability for the owners, is called a:

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Answer: A. limited liability company.

Explanation:

A Limited Liability Company (LLC) is a type of company that is operated and taxed like a partnership for instance, profits that flow to the partners are taxed on the partner's income but not on the firm to prevent double taxation. This is called Flow-Through Taxation.

They operate with limited Liability for the owners because the owners are only personally liable for the debts and liabilities the company has up until the capital they invested. Anything past this and they cannot be held liable.

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2 years ago

The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first

kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued = 70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares = 70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and luney has issued = 70000 shares

so here

we know that

luney has shares outstanding = 70000 - 7000

luney has shares outstanding 63000

7 0

2 years ago