Answer: 1%
Explanation:
The Nominal interest rate has not been adjusted for inflationary effects yet and as such is considered overstated.
The Real Interest rate has been adjusted for inflation and is believed to show the actual return one receives.
Tax is calculated on the Nominal rate.
After tax Nominal Rate = 5% * ( 1 - 40%)
= 3%
Then adjust for inflation to find real rate,
= 3% - 2%
= 1%
The After-tax real rate is 1%.
It is true that <em>economic </em>feasibility determines if the project is an acceptable financial risk and if the organization can afford the expense and time needed to complete the project.
Answer:
Zero economic profits in the long run.
Explanation:
In a perfect competition, firms are able to freely enter into, or exit a market.
As more and more firms enter the market, it causes an increase in supply in the long run, which<u> leads to a fall in prices and therefore profits, such that firms will start to earn normal profits or </u><u>zero economic profits.</u>
I was going to say it's B, but I can also see A being the right answer.
Answer:
The correct approach is "dealer".
Explanation:
- Dealers would provide money supply to financial products whilst also trying to establishing a working capital of those that have been exchanged at a small concentration. By mobilizing savings, dealers generate more money out of the expansion respectively bids and start questioning for quotes.
- To make profits, individuals consider purchasing lesser at either the contract offer, as well as take revenue at either the request and then, have a high turnover.
