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devlian [24]
3 years ago
10

If a person has money invested at 9 percent and the rate of inflation is 5 percent, how much return are they actually making on

their investment?
Business
2 answers:
madreJ [45]3 years ago
8 0

Answer:

4%

Explanation:

It is given that a person has money invested at 9 percent and the rate of inflation is 5 percent.

We need to find the actual interest rate.

Real interest rate = Rate of interest - Rate of inflation

Substitute the given values in the above formula to find the actual interest rate.

Real interest rate = 9% - 5%

Real interest rate = 4%

Therefore, the real interest rate on their investment is 4%.

makvit [3.9K]3 years ago
7 0

Answer:

1. An index determined by measuring the price of standard goods brought by urban consumers.

2. Producers raise prices to meet increased cost.

3.  Demand-pull theory.

4. It rises

5. 4 percent.

Explanation:

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2 years ago
The risks created by rapid changes in it have not affected which concepts of internal control?
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<h3>What is technology?</h3>
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Answer:

For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.

In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.

Explanation:

There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.

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