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satela [25.4K]
4 years ago
13

Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answe

r as a whole number. In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real interest rate?
Business
1 answer:
forsale [732]4 years ago
8 0

Answer:

1% negative

Explanation:

<u>a. What is the real interest rate?</u>

the inflation premium is an added value to the real interest rate to cover the effect of inflation and be more attractive to potential investor:

real interest rate + inflation premium = nominal interest rate

real interest rate + 2% = 1%

we clear real interest:

real interes rate = 1% - 2% = -1%

The real interest is 1% negative

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sveta [45]

Answer:

Option A

Explanation:

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They make all their dough of the product by themselves so that the neutrality regarding their consistency remains intact thought the country,

5 0
4 years ago
Wildhorse Co. uses a periodic inventory system. Details for the inventory account for the month of January 2017 are as follows:
OLEGan [10]

Answer:

Ending inventory=  $1514

Explanation:

Giving the following information:

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6 0
3 years ago
Introduction of checks into the payments system reduced the costs of exchanging goods and services. Another advantage of checks
sweet-ann [11.9K]

Answer:

they provide convenient receipts for purchases

Explanation:

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6 0
4 years ago
d needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. w
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The kind of policy is needed Level term.

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6 0
2 years ago
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Bingel [31]

Answer:

Only going to dept for things you really need and have planned for

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