Answer:
(c) $10,000
Explanation:
If the long-run supply curve is horizontal, then the supply will remain the same in the long-run. The total amount of money (A) that consumers will spend, in total, on potatoes is given by the product of the quantity purchased by the price, and can be found by rearranging the demand function:
Consumers will spend $10,000 on potatoes.
Answer:
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Explanation:
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1. Positive economic growth means that the value of all goods and services produced in the economy increase by an unknown amount
2. growth in the amount of goods and services produced
The real rate of return is 3.15%.
What is real rate of return?
The annual percentage of financial gain on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of the a given sum of money over time. The investor can calculate how much more of a nominal return seems to be real return by adjusting this same nominal return to account for inflation. Investors must account for the effects of additional factors, including such taxes and investing fees, in addition to adjusting for inflation, in order to calculate real returns on their investments or to make investment decisions. Subtracting this same nominal interest rate from the inflation rate yields the real rate of return.
1+real rate = (1+rate of return) / (1+inflation)
1 + real rate = (1+0.0645) / (1+0.032)
1 + Real Rate = 1.0315
Real Rate = 0.0315 = 3.15%
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