Inflation is the economic condition in which the interest rate keeps increasing which is beneficial for the lenders. But not a fixed rate lender.
<h3 /><h3>What is Interest Rate?</h3>
Interest rate is the prevailing market rate which the lender of the money gets in return for the money provided as a loan.
If there is a fixed interest contract the lender will get the same percentage of return for the duration of contract, no matter the fluctuation of the interest rate in the market. This is not beneficial when the economy is facing inflation. As whatever be the rate in the market (definitely higher) the lender will get the same percentage of return.
However if there is a variable rate contract the rate is updated and the lender is paid at the updated interest rate. This is beneficial when the economy is facing inflation.
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Okay. So the warehouse bought the digital way Che's for $92.99 and they're gonna sell it to people for 25% more. So what we do is 92.99 * 125% or 1.25 in decimal form. When we multiply the numbers together, the product is 116.2375 or 116.24 when rounded to the nearest hundredth. The selling price of the digital watches is $116.24.
A customer who sold a bond at a loss must wait how long before he can buy back a substantially identical bond and not have the sale classified as a wash sale?
30 days.
Answer:
C) abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.
Explanation:
According to different theories about trade specialization, a company or even a country should specialize in producing only those products that they can make better than their competition, i.e. have a comparative or absolute advantage in their production.
In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q will only produce jam since they have a comparative advantage in jam production.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero.
Each program= 225
Combined earnings= 225*2= 450
