1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firlakuza [10]
3 years ago
15

If the inflation rate unexpectedly rises:_______.a. borrowers gain at the expense of lenders.b. lenders will gain at the expense

of borrowers.c. the real interest rate will exceed the nominal interest rate.d. there is no reason to expect that the inflation will help borrowers relative to lenders.
Business
2 answers:
Alborosie3 years ago
7 0

Answer:

a. borrowers gain at the expense of lenders

Explanation:

Inflation refers to the sustained increase of the price of a commodity over a period of time.

It can be caused due to increase in production cost or increased demand of a good or service.

The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .

Scilla [17]3 years ago
3 0

Answer:

A) borrowers gain at the expense of lenders.

Explanation:

The real interest rate that lenders earn = nominal interest rate - inflation rate. If the inflation rate increases, the real interest rate earned decreases.

The real interest rate that borrowers pay is also = nominal interest rate - inflation rate. If the inflation rate increases, the real interest rate paid decreases.

So, any increase in the inflation rate favors borrowers and hurts lenders.

You might be interested in
Which of the following statements regarding Federal Reserve independence is​ incorrect?
hichkok12 [17]

Answer:

The correct answer is option D

D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.

8 0
3 years ago
Sheridan Company had the following transactions during the quarter end:
White raven [17]

Answer:

Payment of insurance premium include in last quarter = $204,000

Explanation:

Given:

Insurance premium during the year = $816,000

Number of quarter in the year = 4

Computation of payment include in last quarter:

Payment of insurance premium include in last quarter = Insurance premium during the year / Number of quarter in the year

Payment of insurance premium include in last quarter = $816,000 / 4

Payment of insurance premium include in last quarter = $204,000

8 0
3 years ago
Suppose a gold miner finds a gold nugget and sells the nugget to a mining company for $600. The mining company melts down the go
KIM [24]

Answer:

GDP grew by $2,200

Explanation:

G<em>ross domestic product (GDP) which is the total market value of all the final goods and services produced in a country over a given period of time. The GDP can be calculated using the value added approach.</em>

Here the GPD figure is ascertained by summing the amount of additional value created by each factor of production at each stage of the production process of the final product.

<em>Only the values added are summed, the cost of the inputs or intermediate goods are not included</em>

<em>In this question, the final value of $2200 represents the amount by which the GDP has increased in the period. This also can be verified using the value-added approach as follows</em>

                                                   Value added($)

Gold miner   -                                   600

Mining company : 1000 -600 =      400

Jewerlry maker  :1600 - 1000 =      600

Departmental store :2200 -1600 = <u>600</u>

Total value added                           <u>2,200</u>

8 0
3 years ago
Please help me asap!!!
melomori [17]

Answer:

Finder's fee. good luck dude

6 0
2 years ago
To barter means to____?<br><br> 1. create.<br> 2. trade.<br> 3. earn.
kicyunya [14]
The correct answer is exchange or trade
7 0
3 years ago
Read 2 more answers
Other questions:
  • State x requires that persons who prepare and serve liquor in the form of drinks at commercial establishments be licensed by the
    15·1 answer
  • Trevor Williams’ bank calculates interest daily. At an APR of 3%, how much simple interest does $2,000 earn in twelve days?
    9·2 answers
  • Ashley wants to increase the profits of her e-business. what two ways can be used to accomplish her goal of increasing profits?
    15·1 answer
  • Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $
    12·1 answer
  • Granite works maintains a debt-equity ratio of .65 and has a tax rate of 21 percent. the pretax cost of debt is 9.8 percent. the
    11·1 answer
  • Your health club is offering a free one-year membership for the person who attends the most yoga classes in March. This results
    6·1 answer
  • Factors leading to the slow growth of demand in embryonic industries include all of the following except the
    8·1 answer
  • Some years ago, the three leading aluminum producers in the U.S. changed prices nine times by exactly the same amount each time
    6·1 answer
  • A 60-year old retiree is in a very low tax bracket. He has a low risk tolerance and wishes to make an investment that will provi
    8·1 answer
  • Tirri Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$ 7.05 Direct labor$ 4.20
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!