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Oksana_A [137]
3 years ago
8

The difference between the nominal interest rate and the real interest rate is

Business
2 answers:
leonid [27]3 years ago
8 0

Answer: the correct answer is letter D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation: in financial maths when you speak about "real" rates you should consider the inflation impact.

anyanavicka [17]3 years ago
8 0

Answer:

D. the nominal interest rate is the stated interest rate whereas the real interest rate is the nominal interest rate minus the inflation rate.

Explanation:

The nominal interest rate is that interest rate that is advertised by the financial institutions either as interest on loan or deposit. Since it is the interest rate stated in financial instruments like the ones quoted on bonds, it is also seen as the stated interest rate.

The real interest rate is the interest rate which has been adjusted to remove the effect of inflation. That is, to get the real interest rate, take the nominal interest rate and subtract the inflation rate. therefore, we can use the following formula.

Real Interest Rate =  Nominal Interest Rate - Inflation Rate.  

In fact the real interest rate can be sen as the real cost of borrowing money.

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Explanation:There are some correlation between economic growth and trade.

Global economics intergration may be a potential factor that causes trade to affect economic growth positively.

When there is global intergration companies learn to adopt new technologies and those which doesn't may phase out ,dynamic firms which can export to the world experience an increase in demand and this lead to these companies gaining the advantage of operating on larger scale where price per unit product becomes lower. This means the company isnt restricted to their country of origin.

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There is not enough info. please provide more.
6 0
2 years ago
Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o
AysviL [449]

The answer is<u> "political risk".</u>


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Political risks  are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0
2 years ago
True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. True False Because it takes many
jeyben [28]

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1. False

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2<em>. Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a </em><em><u>shortage</u></em><em> that is </em><em><u>larger</u></em><em> in the long run than in the short run.</em>

In the long run, supply is more sensitive because farmers can decide to plant oranges on their land, to plant something else, or to sell their land altogether.

This means that a price ceiling in the long run will be less attractive to farmers so they might leave the market. If they do this then the shortage will be more as there are now less supplies in the market.

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3 years ago
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kap26 [50]

Answer:

B. Subscribers cancelling their subscriptions

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Central Times’s business environment had suffered tremendousy in recent times with transition from newspaper publication to online journalism. As a result of this, Time's publishing company has faced many problems some of which are highlighted below: many of the newspaper subscribers have cancelled their subscription, they were losing revenue, they had to relief a third of their reporting staff primarily. However, amidst all these, <u>the primary cause of disruption to Central Times’s business environment is option B</u> (Subscribers cancelling their subscriptions). It was this problem that led to the other problems (loss of revenue, firing a third of their reporting staffs)

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3 years ago
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