The real interest rate is;
Real interest rate = nominal interest rate - inflation
<h3>What is inflation?</h3>
The rate at which prices increase over a specific time period is known as inflation. Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.
There are three main causes of inflation:
- demand-pull inflation: Demand-pull inflation, which economists define as "too many dollars chasing too few things," is the increasing pressure on prices that accompanies a scarcity in supply.
- cost-push inflation: When the cost of labor and raw materials rise, the overall price level will rise (inflation).
- built-in inflation: As employees anticipate an increase in compensation when the cost of products and services rises in order to maintain their standard of living, this is known as built-in inflation.
<h3>What is real interest rate?</h3>
A real interest rate reflects the rate at which current things are preferred over future goods over time.
The difference between the nominal interest rate and the inflation rate is used to calculate the real interest rate for an investment.
Real interest rate = nominal interest rate - rate of inflation (expected or actual).
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<span>JAD, joint application development, is a joint process that uses both the user and IT together to create the application. RAD, rapid application development, is similar to JAD but is much faster and takes far less time. Both are fast methods and can save cost for a company. With JAD it is likely to get a more quality product due to the involvement of the user in creating the application.</span>
Answer:
The answer is: B) FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.
Explanation:
FICA taxes (or payroll taxes) are based on an employee's salary. Both employees and employer pay FICA taxes for Social Security and Medicare. Employers withhold these taxes from their employees' paychecks, and then pays them to the Internal Revenue Service (IRS).
Answer:
Oscar Lewis’s "culture of poverty" is usually interpreted as blaming the poor people for being poor. It's like, you are poor because you decide to be poor, and Cho (and I) believe that it is not true.
While Mario Luis Small believed that someone doesn't have or belongs to a culture just because his or her race, ethnic group or gender. His work relates to how environmental, socio-cultural conditions influence poor neighborhoods and their residents.
I do not agree with the given statement that is "Only variable costs can be differential costs.".
The difference in the costs of two alternative decisions is referred to as differential cost.
When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.
Variable costs in cost accounting are costs that vary according to how much a company produces.
Variable costs are typically proportional to output.
As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.
Hence, I disagree with the statement given in the question.
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