The home loan must be repaid at a real interest rate of 3%; (8.5%-5.5%=3%).
<h3>Real interest rate </h3>
A real interest rate is adjusted to remove the effects of inflation and gives the real rate of a bond or loan. A nominal interest rate refers to the interest rate before taking inflation into account.
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Answer:
The correct answer is letter "C": be a straight line.
Explanation:
The Production Possibility Frontier (<em>PPF</em>) aims to determine what the maximum production would be using finite factors. Typically, the higher production of a good implies lowering the production of another. The PPF is represented by a graph with a vertical "X" axis and a horizontal "Y" axis for easiness in understanding.
Thus, if the factors for production were perfectly adaptable, the PPF curve will display a straight line in a graph.
Answer: variable input; fixed input
Explanation:
Based on the information given, in the short run, these workers are variable inputs, and the ovens are the fixed inputs.
Fixed inputs are the inputs that can't be easily changed that's increased or reduced in the short run while variable inputs can be increased or reduced easily.
Since Rina cannot change the number of ovens she uses in her production of pizzas in the short run, they're fixed input. The workers are variable input.
Answer:
Consumption is influenced by advertisements for products that are consumable today and savings from ads that advocate in investing tomorrow.
Explanation:
Both are important to run the circular flow of economy. If a person invests savings on a product, so there should be someone to consume it, this will help in achieving equilibrium point between aggregate demand and aggregate supply.
Increase in one shall result in decrease in other and in both cases either there will be more products to be consumed rather than the actual consumption resulting in surplus if there is excess saving or vice versa .
Answer:
Market Skimming
Explanation:
Market skimming is a pricing technique whereby producers and organizations set high introductory prices in order to attract buyers with strong affinity for the products and who possess the resources to buy it, Then over time continue to gradually reduce to products so others in the market could afford it. It is also known as price skimming, involves setting high prices for a product just launched in the market. A highly selective market is where techniques like this thrives.
