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3 years ago

The real interest rate is equal to the:_________

Business

1 answer:

ahrayia [7]3 years ago

4 0

Answer:

D. nominal interest rate minus the inflation rate.

Explanation:

The real interest rate has been adjusted for inflation.

If nominal interest rate is 6% and inflation is 2%, then the real interest rate would be 4%.

I hope my answer helps you

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Suppose that the behavior of households and firms in an economy is determined by the following equations C=60+0.9Yd, II = 34, G

Airida [17]

Answer:

Please find the detailed answer as follows:

Explanation:

We use

a) AD = C + I + G + NX

AD = 60 + 0.9(Y – 10 – 0.1Y) + 34 + 25 + 30 – 20 – 0.05Y

AD = 120 + 0.76Y

b) Y* = 500

c) T = 60

d) budget surplus (T - G) = (60 - 25) = 35

e) Trade deficit = X - M = 30 - 45 = -15.

3 0

3 years ago

The production possibilities frontier illustrates

liubo4ka [24]

Answer:

Option (c) is correct.

Explanation:

The production possibility frontier is a graphical representation of combination of two different goods that an economy can produce with the limited available resources. All the points on the production possibility frontier curve represents efficient allocations and all the points below that curve are inefficient.

All the points above this curve are unattainable or we can say that combination are not affordable for the economy.

7 0

3 years ago

Mr. West wishes to purchase a condominium for $240,000 in cash upon his retirement 10 years from now. How much should he deposit

Oduvanchick [21]

Answer:

He should deposit $1,744.37 at the end of each month.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value or the of condominium = $240,000

M = Monthly payment = ?

r = monthly interest rate = 2.7% / 12 = 0.027 / 12 = 0.00225

n = number of months = 10 years * 12 months = 120

Substituting the values into equation (1) and solve for M, we have:

$240,000 = M * (((1 + 0.00225)^120 - 1) / 0.00225)

$240,000 = M * 137.585424499073

M = $240,000 / 137.585424499073

M = $1,744.37

Therefore, he should deposit $1,744.37 at the end of each month.

8 0

3 years ago

The Mary Company primarily sells dishes, and recently purchased a cardboard box company. Mary's new cardboard box division has n

fgiga [73]

Answer: $1.50

Explanation:

Based on the information given in the question, we are informed that the variable cost of each box is $1.50 and usually has a contribution margin of $0.80 per box.

We should note that the minimum transfer price that the box division should find as acceptable will be the relevant cost. In this case, the relevant cost is given as $1.50 pee box and therefore, the minimum transfer price will be $1.50.

8 0

3 years ago

Ramanond Technologies is an independent business that facilitates foreign exchange trades. In the context of institutions that m

earnstyle [38]

Answer:

Fiscal investors.

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Under globalization, a fiscal investor refers to an independent business that facilitates or enhances foreign exchange trades between two or more countries.

This ultimately implies that, fiscal investors are institutions or business firms that make it possible for foreign exchange to take place with respect to the buying and selling of goods and services between countries.

8 0

3 years ago