The real interest rate = 5%
Inflation rate = (CPI 2013 - CPI 2012) / CPI 2012
= (231 - 220) / 220
= 11 / 220
= 0.05 or 5%
Real interest rate = nominal interest rate - inflation rate
= 10% - 5%= 5%
Hence, the real interest rate is 5%
<h3>What is a loan?</h3>
A loan is a financial instrument that allows you to borrow money from a lender in order to finance a purchase or investment. The amount of the loan can be based on specific terms and conditions, and usually requires either an down payment or collateral.
Once you have submitted the application, your lender will contact you for additional information, including your credit history and other relevant details. After reviewing this information, the banker may authorize or decline your loan request according to their discretion. If approved, you will then need to provide documentation such as an applicant profile form (IFS), proof of income/employer verification letter(s), bank statement showing funds available in account etc., before closing the transaction.
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Answer:
c. supply of bicycles will shift to the left.
Explanation:
If the minimum wage is increased, the cost of hiring labour increases and this increases the cost of production. The increase in the cost of production makes producers reduce supply in a bid to cut down cost.
A reduction in supply leads to a leftward shift of the supply curve.
I hope my answer helps you
Answer:
Deflation
Explanation:
A deflation is a fall in general price level.
When there is a deflation, things become cheaper and purchasing power increases.
Deflation is usually caused by a widespread fall in demand
For example, if there is a deflation, the price of the Tesla would fall and it would be relatively cheaper than it was 5 years ago.
Divide 50,000 by 12 to get 4,166.67
