Answer:
Year 1= 1.5%
Year 5= 3.5%
Year 10= 3.5%
10 year nominal interest rate will be 3.5%
Explanation:
Answer:
$12,000
Explanation:
The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.
Total capital balances = $30,000 + $20,000 = $50,000
Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.
Therefore, the amount of loss on realization is $12,000.
Answer:
(receive higher wages that reflect an increase in their value of marginal product.)
Answer:
a decrease in the demand for money
Explanation:
As the money is now more expensive because, holding cash in hand means not capitalize with the interest, the agents (families and business) will try to not have liquid money but, invest to achieve the better yields.
Answer:
Portugal and Austria
Comparative Advantage in the Production of Beer and Cheese:
1a. Portugal
b. Austria
2. a. 3 barrels and
b. 0.09 or 1/11 pounds
3. A. 4 barrels of beer per pound of cheese
Explanation:
a) Data and Calculations:
Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer
Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer
Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4
b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria. This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.
