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daser333 [38]
1 year ago
13

Indexation refers to a process of adjusting the nominal interest rate so that it is equal to the real interest rate. O using a l

aw or contract to automatically correct a dollar amount for the effects of inflation. O using a price index to deflate dollar values. an adjustment made by the Bureau of Labor Statistics to the CPI so that the index is in line with the GDP deflator.
Business
1 answer:
Bond [772]1 year ago
4 0

Indexation is the process of using a statute or contract to automatically adjust a dollar amount for the impacts of inflation to bring the nominal interest rate into line with the actual interest rate.

<h3>What is Indexation?</h3>

Indexation refers to the process of changing a price, wage, or other value in response to changes in another price or a group of related values. Indexation can be used to account for changes in prices and costs across regions, as well as to account for the effects of inflation, cost of living, and input prices over time. Deindexation is the unwinding of indexation, which is a mechanism to adjust income transfers using a price index in order to maintain the public's purchasing power after inflation. The purchase price of an investment is modified through indexation to account for the impact of inflation on it. Lower earnings result from a greater purchasing price, which in turn results in a lower tax. 

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What is the best example of a short-run adjustment?
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Answer:

Short-run economics primarily affect price.

Explanation:

When demand decreases for any reason, prices go down in the short term. When demand spikes, prices go up. ... Long-run adjustments occur when sustained increases or decreases in demand cause a business to change its practices and can affect both price and the means of production.

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Apple is considering increasing the amount of money it spends on product development.
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You lend $5,000 to a friend for one year at a nominal interest rate of 10%. Inflation during that year is 5%. As a result, you w
blondinia [14]
The first would would be $5,500 and then the last space would be $5,250
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Explain at least one potential implication for the genetic diagnosis of traits such as intelligence and criminality.
tankabanditka [31]
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the policy loan provision means that a. an individual can take out a loan on his term policy. b. the death benefit will be incre
Alenkasestr [34]

According to the policy loan clause, the policy owner may borrow any sum up to the policy's cash value. As a result, choice (C) is the best way to respond.

<h3>What is policy loan?</h3>

A policy loan is given out by an insurance provider and is secured by the cash value of the borrower's life insurance policy. A "life insurance loan" is another name for it. They used to be renowned for having cheap interest rates, but that isn't necessarily the case now.

Even though they have limitations, policy loans typically provide easy access to money. When a universal or whole life insurance policy has built up cash value, policy loans may be taken out.

Hence, option (C) is the accurate one.

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