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enot [183]
3 years ago
6

The real-balances effect suggests that a

Business
1 answer:
Anettt [7]3 years ago
8 0

Answer:

A

Explanation:

real-balance effects do not have to so with the valuation of financial assets.

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You deposit $509 in a savings account and one year later you have $562. At the same time, the CPI increases from 126 to 143. Wha
GaryK [48]

Answer:

real interest rate = -3.08%

Explanation:

real interest rate = nominal rate - inflation rate

  • nominal interest rate = [($562/$509) - 1] x 100 = 10.41%
  • inflation rate = [(143/126) - 1] x 100 = 13.49%

real interest rate = 10.41% - 13.49% = -3.08%

since the real interest rate is negative, the investor actually lost money in real dollars. This means that the amount of goods that the investor could purchase before making the investment is higher than the amount of goods he/she will be able to buy after the investment.

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??? C ???

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Industry analysts said that the recent rise in fuel prices may be an early signal of the possibility of gasoline and heating oil
yaroslaw [1]

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(E) that prices of gasoline and heating oil will stay higher than usual through

Explanation:

4 0
2 years ago
The capital gains (losses) netting process for taxpayers without 25 or 28 percent capital gains requires them to (1) net short-t
elena55 [62]

Answer:

False

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Capital gains and losses netting will have no effect on tax payable. The individual impact on tax will be same as of netting the gains and losses. The net outcome of the tax will be remain un impacted.

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