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bulgar [2K]
4 years ago
11

(I) The real interest rate: A. is the interest rate that is quoted on a financial debt and a​ firm's assets. B. is equal to the

nominal interest rate minus the inflation rate. C. is equal to the inflation rate minus the nominal interest rate. D. is the interest rate that adjusts GDP for changes in prices.
(II) Suppose an economy has an inflation rate of 2.5​% and a bank makes a loan with an interest rate of 5.9​%. In this​ case, the real interest rate is nothing​%. ​(Enter your response rounded to one decimal​ place.)
Business
1 answer:
Anestetic [448]4 years ago
5 0

Answer:

B. is equal to the nominal interest rate minus the inflation rate

(II) 3.4% simplify method

    3.317% fisher formula

Explanation:

5.9 - 2.5 = 3.4 real rate

or using fisher formula

\frac{1+rate}{1+inflation} - 1 = $real rate

1.059/1.025 - 1= 3.317 real rate

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Costs that are NOT affected by the quantity of a product sold are _______ costs. Examples of these costs include rent, insurance
Dvinal [7]

Answer:

The correct answer is fixed costs.

Explanation:

Fixed costs are the cost that is spent on fixed inputs. They do not vary with the level of output. For instance insurance, rent, etc. They do not change with the change in the quantity of product, unlike variable costs.  

The variable costs are the cost incurred on variable inputs. They vary with the level of output produced.

6 0
3 years ago
The direct materials and direct labor budgets provide information for preparing the:________a) production budget.b) sales budget
Korolek [52]

Answer:

C.) Cash budget.

Explanation:

As the name sounds is exactly what it directly entail; as it explains the direct input and output flow pattern of cash in a said organisation or firm. And in most cases, it is seen to access these funds and their usage pattern.

In this case, it can know and give heads up on when their is cash shortage or when a form does not have enough liquidity funds to run it. That is why here, direct and labour budgets are parts of what makes up the cash budget.

6 0
3 years ago
The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B ha
Katen [24]

Explanation:

According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .

The beta values for both the stock is given as -

Stock A = 0.82

and ,

Stock B = 1.29 ,

From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both  .

Since ,  in the above case the absolute sense can not be determined and only the judgement can be made .

4 0
4 years ago
Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs
Helen [10]

Answer:

The contribution  margin ratio is 35%

Explanation:

The formula for contribution is given below:

Contribution margin = revenue − variable costs.

Contribution margin ratio is given as:

(Sales – variable expenses) ÷ Sales

In this case,contribution is given as 1000*($20-$13), in other words selling price per unit minus variable cost multiplied by number of units sold.

Contribution is $7000

contribution margin ratio =$7000/($20*1000)

                                         =0.35  or 35%

The implies that Hollis Industries makes a contribution of 35% per unit of output sold,hence, the contribution contributes towards covering fixed costs and making profit overall

4 0
3 years ago
Some employees at a clothing manufacturer investigate pay rates on Salary and learn that the company has been paying them signif
lora16 [44]

In this case, the most likely reason for this is The employees will conclude that there must be regional differences in pay.

<h3>What is a Pay Difference?</h3>

This refers to the discrepancy that exists when a person is paid a different amount to another person who is performing the same or similar work and can be affected by things like location, etc.

Hence, we can see that based on the fact that the employees of the cloth store make an investigation into their pay rates and find out that there is a price discrepancy that is higher than the national average, they would conclude that there must be regional differences in pay.

Read more about price differences here:

brainly.com/question/25565797

#SPJ1

6 0
2 years ago
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