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pickupchik [31]
1 year ago
5

Select the correct answer. What is the real interest rate for an account with a nominal interest rate of 1% when the rate of inf

lation is 2%? -2% -1% 0% 1% 2%.
Business
1 answer:
qwelly [4]1 year ago
8 0

Your actual rate of return is -1% if you have a savings account that offers a nominal interest rate of 1% but inflation is now at roughly 2%.

<h3>How is real interest rate determined from nominal and projected rates?</h3>

The difference between the nominal interest rate and the inflation rate is used to calculate the real interest rate for an investment: Real interest rate is calculated as nominal interest rate minus inflation (expected or actual).

<h3>We determine the real interest rate for what reasons?</h3>

Lenders want to lend money at interest rates that fluctuate with the current market interest rate because doing so helps them to avoid the danger of lending at an extremely low real interest rate. This preference is driven by the idea of the real interest rate.

To know more about interest visit:-

brainly.com/question/29480777

#SPJ4

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According to the Census Bureau, in October 2016, the average house price in the United States was $27,358. 8 years earlier, the
yarga [219]

Answer:

Annual increase in price=3.3%

Explanation:

Using the cumulative average growth formula, we can compute the average annual increase as follows;

Average annual increase =( Recent price/Initial price)^1/(n-1)

Initial price =$27,358. 8

Recent price = $21,808

n=8

Average annual increase= (27,358. 8/21,808)^(1/(8-1))=3.3%

Annual increase in price

3 0
3 years ago
Which of the basic principles of economics is at work in the following situation? You decide how many cups of coffee to have whe
Lelu [443]

Answer:

The answer is: Cost-Benefits Analysis

Explanation:

A cost benefit analysis is done to identify the benefits of an action as well as the associated costs. You then subtract the costs from benefits, and if the numbers are positive you know it´s a good project. But if the costs are too big and offset the benefits, then the project is no good.

In this specific case, you have to balance the cost of drinking an extra cup of coffee (how jittery or nervous it makes you feel) with the benefits of drinking that cup of coffee (all the extra work you can do). Usually someone will keep studying and drinking coffee until they just can´t bear standing awake. It also depends on how much you really need a good grade on that specific test.

6 0
3 years ago
Financial tension may arise from large scale migration of low skilled labor into developed countries due to:_____.
ElenaW [278]

Financial tension may arise from large scale migration of low skilled labor into developed countries due to:

  1. Decreasing wages as supply of labor increases
  2. Net fiscal costs related to social welfare increase

<h3>What is migration?</h3>

This is the movement of people from one country to another. Here, migration take place due to low wage rate being paid to workers, which is not sufficient to meet their daily needs.

There are several reasons for migration. However, the commonest are:

  • People can enjoy better infrastructural facilities like good roads, stable power supply.
  • The standard of living of the people can be enhanced.
  • There will be access to education and job opportunities for the migrants.

When there is frequent migration, such situation can create financial tension or instability to the developing countries. This is because of large scale of low skilled labor that would leave the country and then move to developed countries.

Learn more about migration here: brainly.com/question/18259786

#SPJ1

6 0
2 years ago
How do you calculate the variable cost?
NikAS [45]

Calculate total variable cost by multiplying the cost to make one unit of your product by the number of products you've developed. For example, if it costs $60 to make one unit of your product, and you've made 20 units, your total variable cost is $60 x 20, or $1,200.

Hope this helps have a great day :)

6 0
3 years ago
Suppose that for the economy of​ Utopia, we have the following information for​ 2018: consumption expenditures​ = $5,000; wages​
Elan Coil [88]

Answer:

$8,000

Explanation:

Consumption expenditures​ = $5,000

Wages​ = $3,500

Gross private domestic investment​ = $1,200

Government expenditures​ = $2,000

Exports​ = $900

Imports​ = $1,100

Through expenditure approach,

GDP = consumption (C) + investment (I) + government spending (G) + net exports (X – M)

= $5,000 + $1,200 + $2,000 +  ($900 - $1,100)

= $8,200 - $200

= $8,000

7 0
3 years ago
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