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svlad2 [7]
2 years ago
11

20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What w

as the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Business
1 answer:
Stella [2.4K]2 years ago
5 0

Answer: 3%

Explanation:

To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:

= [(126-120)/120] × 100

= 6/120 × 100

= 5%

Real interest rate will now be:

= Nominal Rate - Inflation Rate

= 8% - 5%

= 3%

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Reptile [31]
<span>Bond prices have an inverse relationship with interest rates. As bond prices rise, yields will fall. Typically this is bullish for stocks as investors move to the equity marke .Equity is bought and sold in the stock market while debt is bought and sold in the bond market.The Stock Market is a subset of the Capital Market.</span>
5 0
3 years ago
Read 2 more answers
Dr. Peabody recorded an $82 telephone bill that he will pay within thirty days. Which of the following statements is correct?
lana66690 [7]

Answer:

A. Telephone expense is debited $82; accounts payable is credited $82.

Explanation:

Mr. Peabody has incurred a debt of $82 on telephone expenses. His expenses have increased by $82, and his debts(liabilities) have also increased by $82.

An increase in expenses is recorded by debiting the relevant expense account. Mr. Peabody will debit the telephone expense account by $82.

Liabilities have increased by $82. An increase in liabilities is recorded by crediting the liabilities account. Mr. Peabody will complete this transaction by crediting the liabilities account by $82.

7 0
2 years ago
Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose th
laiz [17]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the currently employed people and the unemployment rate:</u>

<u></u>

Employed people= 100,000,000 - 6,000,000= 94,000,000

Unemployment rate= unemployed people / labor force

Unemployment rate= 6,000,000 / 100,000,000

Unemployment rate= 0.06= 6%

<u>Now, the newly employed people and the unemployment rate:</u>

<u></u>

Employed people= 94,000,000 + 300,000 - 200,000

Employed people= 94,100,000

Unemployment rate= 5,900,000 / 100,000,000

Unemployment rate= 0.059 = 5.9%

6 0
3 years ago
A subsistence economy is one that ________. A subsistence economy is one that ________. meets its needs without working for wage
BigorU [14]

Answer:

The options in the question are not well aligned,find below question with properly aligned options:

A subsistence economy is one that ________.

a. meets its needs without working for wages and purchasing necessities  

b. meets its needs by overfishing lakes and rivers

c. purchases resources for immediate use

d. meets is needs while causing ecosystem destruction

e. purchases goods and services from others

Hence the correct option is A,meets its needs without working for wages and purchasing necessities  

Explanation:

In a subsistence economy,every household provides for its own basic needs,without any need for specialization that leads to exchange.

Specialization is act of engaging in what one knows how to do best, that way efficiency and effectiveness are guaranteed, as every output would have been given a professional touch.

Exchange is the process by which individuals buys their needs from others using money earned from their own specialty as a medium of exchange

5 0
2 years ago
The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports account
zaharov [31]

Answer:

the Days sales outstanding is 49 days

Explanation:

The computation of the days sales outstanding is shown below:

Days sales outstanding is

= Average accounts receivable ÷ Credit sales × 365  days

= (($520.2 million + $486.6 million) ÷ 2) ÷ $3,749.9 million × 365  days

= 49 Days

hence, the Days sales outstanding is 49 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
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