The real rate was 8.25%.
Real rate = 8.25%
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Statement showing Computations
Particulars
Fisher formula is (1 + nominal rate) = (1 + real rate) x (1 + inflation rate),
(1+.115) = (1 + realrate) *(1+.03)
(1.115) = (1 + realrate) *(1.03)
1.0825 = 1 + real rate
Real rate = 8.25%.
The nominal interest rate (or interest rate) is the rate of increase in money you pay lenders using borrowed money. Nominal interest rates are often used by banks to represent interest rates on various loans and investments. For example, if your loan has a nominal interest rate of 5%, you can expect to pay $50 in interest for every $1,000 you borrow. At the end of the year he will pay $1,050.
The real interest rate is the interest rate that takes inflation into account. This means it is adjusted for inflation and reflects the real interest rate of a bond or loan. Simply put, this rate reflects the rate of return after taking inflation into account.
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Answer:
Option (b) is correct.
Explanation:
When the united states offered a tax credit to the firms that built the new factories then this will increase the demand for loanable funds because every firm wants to built a new factory, so that they are eligible for the tax credit given by the U.S.
This increase in the demand for loanable funds at the ongoing interest rate would shift the demand curve of loanable funds rightwards and this economy is experiencing a situation where the demand of loanable funds is greater than the supply. This will create a shortage of loanable funds.
The characteristics of writing when matched with their type of writing would be:
- Abbreviations - Personal writing
- Simple language - Business writing
- Complex constructions - Academic writing
- Slang - Personal writing
- Concise - Business writing
<h3>What ar
e the types of writing?</h3><h3>
</h3>
There are various types of writing and they apply based on the situation that they are being used in.
Personal writing is very lenient in its requirements because it involves conversing with someone you have an informal relationship with. These requirements include things like slang and abbreviations.
Business writing on the other hand, has to be simple so that many people can understand it. It also has to be concise to get its point home quickly.
Then there is academic writing which is the most complicated of them all as it involves complex constructions.
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Which is the least important performance dimension for product development projects? D. Product flexibility
Product flexibility has shown no relevant information when performing product development projects. Time-to-market, productivity and quality are all very important components to products and their development. Consumers are wanting to know how long the product will take to create and be available, the productivity of the company is vital to produce the items as needed and at a quality consumers will continue to purchase.