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Serga [27]
3 years ago
8

You are considering investing money in Treasury bills and wondering what the real​ risk-free rate of interest is.​ Currently, Tr

easury bills are yielding 6.5 % and the future inflation rate is expected to be 3.1 % per year. Ignoring the cross product between the real rate of interest and the inflation​ rate, what is the real​ risk-free rate of​ interest?
Business
1 answer:
alisha [4.7K]3 years ago
8 0

Answer:

3.4%

Explanation:

Data provided in the question:

Normal rate of return = 6.5%

Expected Inflation rate  = 3.1 %

Now,

The  real​ risk-free rate of​ interest is given as

Real​ risk-free rate of​ interest = Normal rate of return  - Expected Inflation rate

Therefore,

Real​ risk-free rate of​ interest = 6.5% - 3.1%

or

Real​ risk-free rate of​ interest = 3.4%

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Mrs. Turner is comparing her employer’s retiree insurance to Original Medicare and would like to know what services Original Med
irina1246 [14]

Answer:

Original Medicare covers ambulance services.

Explanation:

Since in the question it is mentioned that the Turner compared her employer retired insurance with respect to the Original Medicare and also she would like to know whether what services are covered if the prescribed criteria are met

So here the original medicare covers the ambulance services as this is a pre hospitalization charges that are mentioned in the insurance policy

5 0
3 years ago
Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to
timofeeve [1]

Answer:

substitution and income effects will counteract each other totally

Explanation:

A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.

The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.

A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.

From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.

The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.

Cheers.

8 0
2 years ago
oselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Speci
tatyana61 [14]

Answer:

Answer for the question:

oselli Animation plans to offer its employees a salary enhancement package that has revenue sharing as its main component. Specifically, the company will set aside 2% of total sales revenue for year-end bonuses. The sales are expected to be $5 million the first year, $5.5 million the second year, and amounts increasing by 10% each year for the next 5 years. At an interest rate of 6% per year, what is the equivalent annual worth in years 1 through 5 of the bonus package?

is given in the attachment.

Explanation:

4 0
3 years ago
Read 2 more answers
The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example
Elis [28]

The merger is an example of

<h3>What is a vertical merger?</h3>

A merger occurs when one firm is absorbed by another firm. When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.

A vertical merger is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company.

To learn more about mergers, please check: brainly.com/question/1086715

5 0
2 years ago
Inflexible or unreliable processes cause organizations to produce goods before they are required; this is called: A. excess moti
alexandr1967 [171]

According to business operation and standards, inflexible or unreliable processes cause organizations to produce goods before required; this is called "<u>Overproduction</u>."

<h3>What is Overproduction?</h3>

Overproduction is a term used to describe a situation in which a business firm produces or supplies an excess quantity of products that is way more than the quantity demanded in the market.

<u>Overproduction</u> of products usually leads to lower prices and sometimes unemployment of labor.

Hence, in this case, it is concluded that the correct answer is option C. "Overproduction."

Learn more about Overproduction here: brainly.com/question/8900736

6 0
2 years ago
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