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satela [25.4K]
3 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]3 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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PLEASE HELP ME I AM STUCK
Marat540 [252]
The answer is 350000
8 0
2 years ago
Expansionary monetary policy Group of answer choices 1. lowers interest rates, causing aggregate demand to shift to the right. 2
masha68 [24]

Answer:

2. raises interest rates, causing aggregate demand to shift to the right.

Explanation:

Expansionary Fiscal Policies try to increase Aggregate demand by :-

  • Decrease in taxes by government ; or / and
  • Increase in government spending

The government injecting more money in public : by reduced taxes & increased govt spending - increases the aggregate demand .

The government finances this increased public spending with same or  decreased taxes - through borrowings.

The government borrowing funds reduces the loanable funds in capital market, this loans' excess demand in capital markets increase their price i.e Interest.

4 0
2 years ago
Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the seg
77julia77 [94]

Answer:

the amount of avoidable cost associated with the segment is $754,000

Explanation:

The cost associated with the segment to be eliminated including:

- Advertising expense $140,000  

- Supervisory salaries  $300,000  

- Allocation of companywide facility-level costs  $130,000  

- The loss for unsold building (*): $60,000

- Maintenance costs on equipment  $112,000

- Real estate taxes on building  $12,000

The total cost is $754,000

(*) The earning from sold building (book value) = Market value of building $160,000 - Book value of building  $100,000 =  $60,000

3 0
3 years ago
A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, wh
ad-work [718]

A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, 1800 will be this manager's annual revenue loss due to cashier shortages

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.

Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".

Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.

Learn more about averages   here

brainly.com/question/20118982

#SPJ4

5 0
1 year ago
Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining le
Julli [10]

Answer: $744,000

Explanation:

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

First, we have to calculate the amortization recorded up to 2019. This will be:

= (1,240,000 / 10) x 2

= 248,000

The we calculate the amortization to be recognized in 2020. This will be:

= (1,240,000 – 248,000) / 4

= 248,000

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

= 1240000 - 248000 - 248000

= $744,000

3 0
3 years ago
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