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Aleonysh [2.5K]
3 years ago
15

Joyce's investments earn 5% nominal annual return right now while the inflation rate is at 1%. If inflation increases to 5%, it

is likely that the nominal rate will _____.
Business
2 answers:
frosja888 [35]3 years ago
8 0

The coerrect answer is B. The interest will decrease, this is because to attain actual interest you subtract the inflation rate from the nominal interest, therefore because the inflation rate increased, the actual interest decreased.

Dafna1 [17]3 years ago
6 0
So if each nominal is 5 and the inflation 1 so if you have 5  inflation you will have 25 nominal 
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Sliva [168]

Answer:

See below

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6 0
3 years ago
A local finance company quotes an interest rate of 18.7 percent on one-year loans. So, if you borrow $42,000, the interest for t
Ray Of Light [21]

Answer:

32.88%

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7 0
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