<span>The true cost of borrowing and lending is best measured by the real interest rate. Real interest rate adjusts the nominal interest rate by inflation. (Real interest=Nominal interest-Inflation)
Let us consider two instances:
Instance 1 : Nominal interest rate is 5% and CPI inflation at 2.8%.
Instance 2 : Nominal interest rate stays at 5% and CPI inflation at 3.5%.
During Instance 2, for an unassuming lender, though it looks like he is not impacted, inflation has taken away some of his purchase power while the interest he earns is the same. Likewise a low inflation rate will have a hidden impact for the borrower and beneficial for the lender.
Instead, if we take real interest into account, first instance had a real interest rate of 2.2% and the second instance had a real interest rate of 1.5% which explicitly shows the impact of the higher inflation rate and thus reflects the true cost of borrowing/lending.</span>
Answer:An authoritarian leadership style----D
Explanation: Since the task needed to be completed is an urgent one i will adopt An authoritarian leadership style so as to give direct dictation and procedures to my subordinates so that goals achieved urgently and efficiently using only my discretion, there would be no time and room for inputs or participation from my group members as all activities directed towards completion of tasks would be controlled by me. Using this style of leadership will ensure me meeting production timely since i am under pressure.
Answer:
a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged
Explanation:
The bank reserves will decrease by the same amount that the client withdrew from the bank, in this case $1,000.
Since the required reserve ratio for checkable deposits is 10%, then the checkable deposits will decrease by 10 times the amount withdrawn from the bank ($1,000 x 10 = $10,000).
The monetary base remains unchanged since the money is still out there in the economy, it only changed from being in the bank to being in the client's pocket.
I think it’s “help desk specialists, PC support specialists”
