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Vlad [161]
3 years ago
8

The Fisher effect states that the: a) expected real rate of interest increases by one percentage point for each percentage chang

e in expected inflation. b) nominal rate of interest is unaffected by the change in unexpected inflation. c) nominal rate of interest is unaffected by the change in expected inflation. d) expected real rate of interest is unaffected by the change in expected inflation.
Social Studies
1 answer:
IceJOKER [234]3 years ago
3 0

Answer:

A. The expected real rate of interest increases by one percentage point for each percentage change in expected inflation.

Explanation:

The Fisher effect is an economic term referred to as the relationship between real and nominal interest rates with inflation. This theory explains that the real interest rate is equal to the nominal interest rate minus the expected inflation rate. In other words, if nominal rates do not increase at the same rate as inflation, then real interest rates will fall while inflation increases.

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The balance that can be used to measure a mass reading of 6.521 g will be a balance with ±0.001 g tolerance.

<h3>What is the tolerance of a balance?</h3>

The tolerance of a balance is the number of decimal place values displayed on the balance and it is the acceptable measurement limitations (in grams) that a balance can tolerate.

  • As such, depending on the decimal place value behind a mass reading will determine the balance used for measurement.

Since no mass reading was given, let's make two assumptions about mass reading.

Mass reading    Assumptions

1                           6.521 g

2                           4.23 g

  • The balance used for the 6.521 g mass reading is a balance with ±0.001 g tolerance.
  • The balance used for the 4.23 g mass reading is a balance with ±0.01 g tolerance.

Learn more about tolerance of a balance here:
brainly.com/question/4804631

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erma4kov [3.2K]

Answer:

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pishuonlain [190]

Answer:

option D

Explanation:

the correct answer is option D

Japanese manufacturer sells recorder to U S retailing firm and the manufacturer is to receive $1 million in 90 days but the dollars start declining to protect himself he should Buy yen Calls.

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