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3 years ago

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?

Business

1 answer:

Veronika [31]3 years ago

6 0

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

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A in the expected future exchange rate ______ the demand for u.s. dollars. in the u.s. demand for imports _______ the demand for

KIM [24]

A in the expected future exchange rate increases the demand for u.s. dollars. in the u.s. demand for imports does not change the demand for u.s. dollars.

In economics, demand is the number of goods that consumers are willing to purchase at various prices in a particular location and during a particular period of time. [1] The relationship between price and quantity demanded is also called the demand curve. Demand for a particular item is a function of perceived need, price, perceived quality, convenience, available alternatives, disposable income, buyer preferences, and many other options.

Demand refers to the consumer's willingness to buy and pay for goods and services without hesitation. Simply put, demand is the number of items that customers are willing to purchase at various prices over a period of time.

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2 years ago

A perfectly elastic demand curve implies that the firm: A) must lower price to sell more output. B) can sell as much output as i

dsp73

Answer:

A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.

Explanation:

The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.

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3 years ago

A detailed plan for the future that is usually expressed in formal quantitative terms is known as a:

Kipish [7]

Answer: (A) Budget

Explanation:

Budget is one of the type of financial plan that is create according to our requirement and also budget.

A budget is one of the type of document that is used for describe the detailed plan in the future and it is usually expressed into the quantitative terms.

The main objective of the budget is to creating a proper plan based on the expenses, revenue, liabilities and the cost in an organization and it also helps in balancing our expenses with the income.

Therefore, Budget is the correct answer.

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3 years ago

Alexis Company was started in Year 1. At the end of Year 1 the Company had the following accounting equation.Assets = Liabilitie

swat32

Answer:

Company's assets at the end of Year 2 were provided by creditors = 20%

Explanation:

Calculation of Cash at the end of Year 2

Cash balance at the end of Year 1 $600

Less: Paid off to notes payable ($500)

Add: Earned cash revenue $700

Less: Paid cash expenses ($400)

Less: Paid cash dividend ($100)

Cash balance at the end of Year 2 $300

Notes payable at the end of Year 2 = Beginning balance - Paid off

= $1,000 - $500

= $500

Calculation of Notes Payable at the end of Year 2

Notes Payable at the end of Year 1 $1000

Less: Paid off to notes payable ($500)

Notes Payable at the end of Year 2 $500

Total assets at the end of Year 2 = Cash + Land

= $300+2200

= $2500

Creditors at the end of the Year 2 (Notes payable) = $500

Company's assets at the end of Year 2 were provided by creditors = Creditors * 100 / Total assets

= $500 * 100 / $2500

= 20%

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3 years ago

If marginal cost is greater than average cost, then

Alex777 [14]

Answer (Marginal costs)

The answer is marginal costs because they are the highest in the margin.

Hope this helps have a nice day :)

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2 years ago

1. Given the nominal interest rate of 17​% and the expected inflation of 13​%, then the value of the real interest rate is ___ ?

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?