Answer:
If inflation is expected to be 7% this next year, your friend will be earning a -2% interest.
Step-by-step explanation:
Real interest rate is the interest rate that takes inflation into account. To calculate for the real interest rate, we have:
<em>Real interest rate = nominal interest rate - inflation rate</em>
<em>Real interest rate = 5% - 7%</em>
<em>Real interest rate = -2%</em>
In this case, the borrower will get paid and your friend will be the one penalized.
Negative interest rates occur infrequently and usually only when a country's central bankers are forced to utilize the monetary policy tool -- where the interest rates are set below zero -- during harsh economic times.
Answer:
$410,400
Explanation:
Cost of goods sold = Beginning inventory + Purchases - Ending inventory
Cost of goods sold = $68,400 + $393,200 - $51,200
Cost of goods sold = $410,400
So, its amount of cost of goods sold is $410,400.
Answer:
The cross price elasticity of demand measure how sensitive is the demand of the product X is due to the change in the price of the product Y.
The formula is stated as: Percentage change in the quantity demanded of product X / Percentage change in the price of product Y.
Further, cross price elasticity can be divided into Positive, negative and zero.
Hope this clears things up.
Good Luck.
Answer:
extended decision making
Explanation:
it is a highly involved consumer decision regarding whether or not to purchase a product