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1 year ago

The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to:

1 answer:

6 0

The Fisher effect indicates that an increase in the expected inflation rate will cause the real rate of interest to: increase by the same amount.

<h3>What Is the Fisher Effect?</h3>

The Fisher Effect refers to the relationship between nominal interest rates, real interest rates, and inflation expectations. The relationship was first described by American economist Irving Fisher in 1930.

The relationship is described by the following equation:

(1+i) = (1+r) * (1+π)

Where:

i = Nominal Interest Rate.

r = Real Interest Rate.

π = Expected Inflation Rate.

The Fisher Effect is an important relationship in macroeconomics. It describes the causal relationship between the nominal interest rate and inflation. It states that an increase in nominal rates leads to a decrease in inflation. The key assumption is that the real interest rate remains constant or changes by a small amount.

Hence , we can conclude that the correct option is A.

Your question is incomplete, but most probably your full question was:

The Fisher effect indicates that an increase in the expected inflation rate will cause the nominal rate of interest to:

A. increase by the same amount.

B. decrease by the same amount.

C. become unpredictable.

D. remain relatively constant.

Learn more about Fisher Effect on:

brainly.com/question/15040842

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Almost all tasks in a project will be connected using either _____ or _____ dependencies.Select an answer:a)start-to-finish; fin

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Answer:

c) finish-to-start; start-to-start

Explanation:

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The second most common type of dependency is the<em> start-to-star</em>t one, where two activities need to start at the same time. This is common for activities where synchronization is paramount.

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2 years ago

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Included in Sage Company’s December 31, 2020, trial balance are the following accounts: Prepaid Rent $5,870, Debt Investments (t

Sunny_sXe [5.5K]

Answer:

Step 1:

Start by setting it up with the divisor 20 on the left side and the dividend 16 on the right side like this:

2 0 ⟌ 1 6

Step 2:

The divisor (20) goes into the first digit of the dividend (1), 0 time(s). Therefore, put 0 on top:

2 0 ⟌ 1 6

Step 3:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer below the dividend.

2 0 ⟌ 1 6

Step 4:

Subtract the result in the previous step from the first digit of the dividend (1 - 0 = 1) and write the answer below.

2 0 ⟌ 1 6

- 0

Step 5:

Move down the 2nd digit of the dividend (6) like this:

2 0 ⟌ 1 6

- 0

1 6

Step 6:

The divisor (20) goes into the bottom number (16), 0 time(s). Therefore, put 0 on top:

0 0

2 0 ⟌ 1 6

- 0

1 6

Step 7:

Multiply the divisor by the result in the previous step (20 x 0 = 0) and write that answer at the bottom:

0 0

2 0 ⟌ 1 6

- 0

1 6

Step 8:

Subtract the result in the previous step from the number written above it. (16 - 0 = 16) and write the answer at the bottom.

0 0

2 0 ⟌ 1 6

- 0

1 6

- 0

1 6

You are done, because there are no more digits to move down from the dividend.

The answer is the top number and the remainder is the bottom number.

Therefore, the answer to 16 divided by 20 calculated using Long Division is:

16 Remainder

Explanation:

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2 years ago

What is a reason people might travel, other than going to visit friends/relatives?

Juli2301 [7.4K]

Answer: Another reason people might travel is maybe for a vacation or get away or people also might travel for their work.

Explanation:

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3 years ago

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You have a loan outstanding. It requires making three annual payments at the end of the next three years of $3000 each. Your ban

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Answer:

The final payment would be of amount $9000

Explanation:

The keywords of the question state that the bank needs an equal amount of money by both of the payment procedures. Hence, no matter which payment method I choose on the outstanding loan, the bank would need a sum of 3x3000 = $9000

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3 years ago

The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $34,000 and accounts receivable of $

Alexxandr [17]

Answer:

Ending balance in inventory= $22,000

Current liabilities= $88,000

Explanation:

The current assets section of stibblr pharmaceutical company included cash of $34,000 and accounts receivables of $54,000

The company's current ratio is 2.5

The acid test ratio is 2.0

Acid test ratio = cash + account receivables /current liabilities

2.0= ($34,000+$54,000)/current liabilities

2.0= 88,000/current liabilities

Current liabilities = 88,000/2

= $44,000

Current ratio= cash + account account receivables + inventory /current liabilities

2.5= $34,000+$54,000 + inventory/$44,000

2.5= $88,000+Inventory /44,000

2.5×44,000= 88,000 + inventory

110,000= 88,000 + Inventory

Inventory = $110,000-88,000

= $22,000

Hence the current liabilities is $88,000 and inventory is $22,000

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3 years ago