Answer:
$800
$1,000
The quantity of money demanded decreases as the interest rate rises.
Explanation:
a
To calculate the opportunity cost on government bond at 8%, we use the following method
Opportunity Cost for 8% interest rate on Government Bonds
= (8/100)%× $10,000
= 0.08% ×$10,000
= $800
To calculate the opportunity cost government at bond on 10%, we use the following method
Opportunity Cost for 10% interest rate on Government Bonds
= (10/100)%× $10,000
= 0.1%×$10,000
= $1,000
b. The quantity of money demanded decreases as the interest rate rises.
Answer and Explanation:
The indications of the effect of each of following transactions are as follows
Particulars Assets Liabilities Stockholder equity
a. Borrowed
money from bank Increase Decrease No effect
b. Sold land for Cash increase No effect No effect
cash at Land decrease
a price equal
to its cost
c. Paid a liability Decrease Decrease No effect
d. Returned for credit Decrease Decrease No effect
some of the office
equipment previously
purchased on credit
but not yet paid for
e. Sold land for cash at Cash increase No effect Increase as Gain
a price in excess of cost Land decrease
f. Purchased a computer Increase Increase No effect
on credit
g. The owner invested
cash in the business Increase No effect Increase
h. Purchased office Increase in office No effect No effect
equipment for cash Decrease in cash
g. Collected an Increase in cash No effect No effect
account receivable Decrease in account
receivable
The answer to this question would be false because when you file for bankruptcy you are not asking to get help to pay your debt you are asking to have it expunged.
If the annual real rate of interest is 5% and the expected inflation rate is 4%, the nominal rate of interest would be approximately 9% (5% + 4% = 9%).
What is real rate of interest?
An interest rate that has been prorated for inflation is referred to as a "real interest rate." The nominal interest rate is subtracted from the inflation rate to arrive at the real interest rate. The real interest rate is equal to the nominal interest rate less the inflation rate, to put it mathematically.
What is the inflation rate definition?
The rate of price growth over an extended period of time is known as inflation. The cost of living in a nation has increased, or prices have generally increased. These are examples of broad measures of inflation.
Learn more about real interest rate and nominal interest rat: brainly.com/question/13324776
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Answer:
5.08%
Explanation:
using the Gordon growth model we can calculate the expected growth rate:
current stock price = dividend / (required rate of return - growth rate)
$54.20 = $3.75 / (12% - g)
12% - g = $3.75 / $54.20
12% - g = 6.92%
g = 12% - 6.92% = 5.08%
