Answer: a. 2.90%
b. 2.81%
Explanation:
Nominal rate = 6%
Inflation rate = 3.1%
a. What is the approximate real rate of interest?
The approximate real rate of interest will be calculated as:
= Nominal rate - Inflation rate
= 6.0% - 3.1%
= 2.90%
b. What is the exact real rate?
Exact real rate will be calculated as:
= (nominal-inflation) / (1+inflation)
= (6.0% - 3.1%) / (1 + 3.1%)
= 2.9% / 1.031
= 2.81%
Answer:
In summary, labor supply is the total hours that workers or employees are willing to work at a given wage rate. Changes in income, population, work-leisure preference, prices of related goods and services, and expectations about the future can all cause the labor supply to shift to the right or left.
Answer:
If I were to start a business, I will choose Sole Proprietorship.
Explanation:
Reasons why I will choose Sole Proprietorship
* I will be the sole owner and responsible for my business.
* All profits (and loss) will belong to me, means the more I work harder, the more return I (alone) will get.
* I can make all the decisions by myself, without the interference of any other person.
* I can expand my business as per my convenience and hard work, if I succeed I can eat all the fruits myself.
* I can grow my business as much I want.
* No one will be my boss, I will be setting my own working hours and work load etc.
When Raphael Corp. incorrectly mentioned an expense of equipment addition instead of capitalizing the effect of the same, then in such case, the net income of the company is understated in the financial statements.
<h3>What is net income?</h3>
The income which is left at the end of an organization at the end of a financial period after making all the regulatory and compliant payments and deductions, such as taxes and depreciation, it is known as net income.
Hence, the significance of net income is aforementioned.
Learn more about net income here:
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