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
vekshin1
3 years ago
12

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money

, both she and Harry expect an inflation rate of 6%. 1st attempt Part 1 (0.3 point)See Hint The expected real interest rate on the loan is %. Part 2 (0.3 point)See Hint Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%. The actual real interest rate on
Business
1 answer:
Lilit [14]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose Sally borrows $1,000 from Harry for one year and agrees to pay a nominal interest rate of 9%. When she borrows the money, both she and Harry expect an inflation rate of 6%. Suppose that when Sally pays back the loan after one year, the actual inflation rate turns out to be 7%.

Real rate= nominal rate - inflation rate

At the beginning of the loan, the expected real rate is:

Real rate= 9 - 6= 3%

The actual rate is:

Real rate= 9 - 7= 2%

You might be interested in
A policy promoting cutbacks in the amount of federal regulations in specific areas of economic activity is
serious [3.7K]
The answer is deregulation. It removes restrictions from laws for to allow competition among the industries and set into the market. However, based on experience, industries, and investments suffered from this set-up. The government stopped it after the mortgage crisis last 2007.

It was also found out that is is difficult to apply because of existing monopolies that can control prices in the market.
8 0
4 years ago
Brenda and John are married file a joint return and have a son being age 5 they live with Brenda's mother the entire year Brenda
arlik [135]

The following statements is correct a) Brenda and John would claim Ben as a qualifying child unless they both choose not to claim their son as a qualifying child.

<h3>What is a qualifying child?</h3>

A Qualifying Child is a child who satisfies the IRS requirements to be your dependent for tax objectives. Though it does not have to be your youth, the Qualifying Youth must be related to you. If someone is your Qualifying Child, then you can proclaim them as a dependent on your tax retrieval.

<h3>What age qualifies as qualifying child?</h3>

To meet the qualifying child test, your child must be more youthful than you and either younger than 19 years old or be a "learner" younger than 24 years old as of the end of the calendar year. There's no age limit if your child is "always and totally disabled" or meets the qualifying comparative test.

To learn more about Qualifying child, refer

brainly.com/question/14328499

#SPJ9

4 0
2 years ago
The cost of goods not yet sold is recorded in the ______ account, whereas the cost of goods that are sold to customers is record
gregori [183]

The answer is inventory account and Cost of goods sold account(COGS) respective to the order of the blanks.

Goods not yet sold means the stock we still have in our inventory. Therefore, the costs related to them will be shown in the inventory account as an asset. As we can recover the cost by selling the goods.

On the other hand, goods sold are included in the sales. Therefore, the costs related to these goods which are sold should be written off and adjusted with the sales account by recording them in the Cost of goods sold (COGS) account

Hence, The cost of goods not yet sold is recorded in the Inventory account, whereas the cost of goods that are sold to customers is recorded in the Cost of goods sold account.

Learn more about Cost of goods sold:

brainly.com/question/5829019

#SPJ4

6 0
2 years ago
Which of the following constitute​ Porter's 5 factor​ model?
Soloha48 [4]

Answer:

D. Threat of new​ entrants, threat of​ substitutes, bargaining power of​ buyers, bargaining power of​ suppliers, current rivalry

Explanation:

Porter's 5 Factor Model is also known as Porter's five forces. Michael E. Porter was a Professor from Harvard Business School. The model is usually applied in an industry to identify the forces that compete to shape the industry. Put differently, these five forces help to analyse an industry's Strength, Weaknesses, Threats and Opportunities (SWOT) Analyses.

As detailed in the answer, the five categories in Porter's model are;  Competitors in the industry, Potential of new entrants in the industry, Power of suppliers, Power of customers and the threat of substitute products.

8 0
3 years ago
​activity-based costing requires four steps. list the four steps in the order they are performed.
forsale [732]
Activity based costing have four steps, the steps are as follows:
1. Identification and classification of all the activities in the value chain in relation to the production of the product.
2. Estimation of total cost for each of the activities identified.
3. Computation of a cost driver rate for each activity based on a cost allocation base which has a causal link to the cost of the activity.
4. Application of the activity cost to product using the appropriate cost driver rate.
6 0
3 years ago
Other questions:
  • Ed is a debtor. Financial Loans, Inc., and the government are Ed’s creditors. For these parties, a bankruptcy proceeding under C
    6·1 answer
  • When you plan a presentation, how should you make sure you stay on track as you talk?
    12·2 answers
  • Niles believes that the reports are true and does not intend to deceive Prime Business, but does not check the reports before ce
    7·1 answer
  • Si juan aporta el 45 % del capital y Pablo la otra parte. En caso de pérdidas de que porcentaje nos hacemos cargo cada uno?
    13·1 answer
  • Stan wants to start an IRA that will have $250,000 in it when he retires in 25 years. How much should he invest semiannually in
    9·1 answer
  • The best business portfolio is the one that ________.
    5·1 answer
  • A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one
    6·1 answer
  • Determine your targetarket​
    15·1 answer
  • On March 31, 2021, Top Notch Goods committed to a plan to sell machinery equipment. The machinery equipment was available for im
    13·1 answer
  • When the members of a marketing channel operate to satisfy their own objectives and maximize their own profits, often at the exp
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!