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
Sonja [21]
3 years ago
12

An increase in the expected rate of inflation will:______a. the real rate of interest.b. the nominal rate of interest.c. both th

e real and the nominal rates of interest.d. neither of the above, unless the increase in inflation is anticipated.e. the real rate of interest only if the inflation is unanticipated.
Business
1 answer:
liubo4ka [24]3 years ago
6 0

Answer:

B

Explanation:

Inflation is a persistent rise in general price levels

Real rate of interest is interest rate adjusted for inflation.

Nominal rate of interest is real interest rate added with the real rate of interest

Nominal Interest Rate = Real rate of interest + inflation rate

If inflation is expected, it would be incorporated into the nominal rate of interest.

For example, if the nominal rate of interest is 9% and expected inflation is 2%. Nominal interest rate would become 11% (9% + 2%)

You might be interested in
"You need to have $15,000 in five years to pay off a home equity loan. You can invest in an account that pays 5.75 percent compo
Nana76 [90]

Answer:

I have to invest $11364.

Explanation:

The formula of Compound Interest is:

A = P(1+\frac{r}{n})^{nt}

where A = Amount

P = Principle

r = rate

n = Number of Compounding per year

t = total number of year

Here, A = 15000, r = 5.75% = 0.0575, n = 4(quarterly), and t = 5.

Putting all these values in above formula:

15000 = P(1+\frac{0.0575}{4})^{4\times5}

⇒ 15000 = P(\frac{4.0575}{4})^{20}

⇒ 15000 = P(1.014)^{20}

⇒ 15000 = P(1.320)}

⇒ P = 11364

Hence, I have to invest $11364 for 5 years.

4 0
3 years ago
Which of the following is the pursuit of the highest standard for what we should believe?
Paul [167]

Answer:

D) Theoretical reason

Explanation:

Theoretical reason is the pursuit of truth, knowledge and wisdom. It is the reason that  leads to cognition. According to this belief, science is the ultimate means to truth. By following theoretical reason, we are in search of the highest standard for what we should believe and live by.

4 0
3 years ago
One method of setting price using the cost-plus method is to add
Amiraneli [1.4K]
Cost-plus pricing<span>, also known as mark-up </span>price<span>, takes place when a firm calculates its unit costs and then adds a percentage profit to determine </span>price<span>.</span>
6 0
3 years ago
Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred
masya89 [10]

Answer:

The answer is given below;

Explanation:

 Preference stocks  950*50    Dr.$47,500

 Paid in capital in excess of par-preference shares  Dr.$  13,300                                  

 (64-50)*950

  Common Stocks  1,900*10        Cr.$19,000

  Paid in capital in excess of par-common stocks    Cr.$41,800

   (64*950)-(1900*10)                                        

8 0
3 years ago
Airbase is a consumer electronics company known for its affordable mobile devices that follows a cost-leadership strategy. In th
lapo4ka [179]

Answer: 4. a consumer electronics company popular among price-conscious customers.

Explanation: Companies who thread a cost-leadership strategy or path could be said to be 'price-centric', that is gives price huge cognizance and will strive to be a market or industry leader when it comes to giving best and most affordable prices on products.

Thus, since Airbase follows a cost leadership strategy and also popular among consumers for its affordable devices, it should also weigh or compare it's strategy to other consumer electronics company which is popular among consumers which gives cognizance to price of products they purchase.

5 0
4 years ago
Other questions:
  • What is the purpose of a design brief?
    15·1 answer
  • Kingbird Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 3
    8·1 answer
  • If the cost of steel increases, then the supply of cars will shift and this shift would cause a shortage of cars to open up at t
    14·1 answer
  • How do financial intermediaries impact the market efficiency?​
    12·2 answers
  • An increase in personal income tax will ________ the amount of money consumers have to spend for food. a. increase c. replace b.
    8·1 answer
  • Who wants to talk??? :)
    15·2 answers
  • whiche one of the following are not elements of an insurable risk a) determinable probability distribution b) calculate chance o
    6·2 answers
  • Going public: Group of answer choices ensures that the company gains control in decision making. enhances the company's ability
    12·1 answer
  • Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. On the other h
    15·1 answer
  • According to the eight-stage model of planned organizational change, the last stage of navigating the change process is?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!