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mariarad [96]
4 years ago
7

The one-to-one relation between the inflation rate and the nominal interest rate, the fisher effect, assumes that the:

Business
1 answer:
-Dominant- [34]4 years ago
7 0
According to the Fisher effect, the real interest rate should remain constant. The Fisher effect was formulated by Economist Irving Fisher who studied the effects of inflation pertaining to interest rates. 
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In 1880 five aboriginal trackers were each promised the equivalent of 100 Australian dollars for helping to capture the notoriou
SSSSS [86.1K]

Answer: If interest rate was 4%= $180.09. If interest rate was 8%= $317.22

Explanation:

Assuming that the aboriginal trackers were promised the $100 at the beginning of the year 1880 and the claim was also made at the beginning of the year 1995.

Number of years from 1880-1995 = 15 years

If the interest rate was 4%

= 100*(1+4%)^15

= $180.09

If the interest rate was 8%

= 100*(1+8%)^15

= $317.22

7 0
3 years ago
1. A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sell
Sedbober [7]

Answer:

Explanation:

A $60,000 increase in investment in subsidiary

8 0
3 years ago
The total assets of Lantz Co. are $810,000 and its liabilities are equal to one-fourth of its total assets. What is the amount o
Tanya [424]

Answer:

$607,500

Explanation:

Given;

Total asset = $810,000

Total liabilities is one-fourth of its total assets

Therefore total liabilities = (1/4) × $810,000

                                         = $202,500

Using the accounting formula

Total asset - total liabilities = stockholders’ equity

stockholders’ equity = $810,000 - $202,500

                                   = $607,500

The stockholders’ equity of Lantz Co.’s amounts to $607,500.

7 0
3 years ago
What makes the demand for u. s. dollars change? in world demand for u. s. exports ______ the demand for u. s. dollars. a in the
loris [4]

In the world demand for US, exports <u>increase</u> the demand for US dollars. a in the US interest rate differential <u>decreases</u> the demand for US dollars

An interest rate tells you how excessive the cost of borrowing is, or excessive the rewards are for saving. So, if you're a borrower, the interest charge is the quantity you're charged for borrowing cash, proven as a percentage of the total amount of the mortgage.

Traditionally, the guideline of thumb is that refinancing is a superb idea if you can reduce your interest rate by way of a minimum of 2%. but, many creditors say 1% financial savings is sufficient of an incentive to refinance.

As interest rates circulate up, the value of borrowing becomes more costly. because of this call, lower-yield bonds will drop, causing their price to drop. As interest prices fall, it will become less complicated to borrow money, and plenty of corporations will issue new bonds to finance growth.

Learn more about interest rates here brainly.com/question/2151013

#SPJ4

5 0
2 years ago
Suppose Joe contracts with Marvin to frame out a shop at Joe's ranch for $10,000. During the framing Marvin discovers the costs
Marina CMI [18]

Answer:

unenforceable;

preexisting duty

Explanation:

Preexisting Duty Doctrine

This is simply regarded as when an individual is already under an obligation to do something. It simply states that the rules and guidelines under contract law that shows that if a party to a contract is under a pre-existing duty to perform, then no second thought (consideration) is taken for the modification of the contract. Modification is then voidable.

3 Types of Legal Duties

1.  Public Legal Duties such ad the duty of a police officer to protect lives and properties.

2.  Contractual Legal Duties such as unperformed, preexisting contractual promises etc.

3.  Private Legal Duties such as the duty to follow the law.

Unenforceable Contracts

This is regarded as a contract that cannot be enforced/given consideration or effect by the court of law etc  unless they are settled and corrected according to law.

Kinds of unenforceable contracts

1.) Those entered into in the name of another by one without, or acting in excess of rights or authority;

2.) Those that do not comply with the Statute of Frauds etc.

8 0
3 years ago
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