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bulgar [2K]
3 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]3 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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Answer:

$200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

§351 allows corporations to defer taxes from capital gains (or losses) resulting from the transfer of property in exchange for stocks.

Corporation's tax basis = $200

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3 years ago
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Xtronic CVT, D-step transmission tuning and 1.6-liter DOHC engine are the key features to point out when demonstrating the  kicks’ efficient performance.

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6 0
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3 0
2 years ago
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If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
Eduardwww [97]

Answer: B. The firm hires 45 workers and earns a $1200.00 Economic Profit

Explanation:

According to the table, when the Market Equilibrium Wage Rate is $105, the number of workers to hire would be 45 and the revenue would be $7,425.

If 45 workers are hired, they would cost:

= 45 * 105 per worker

= $4,725

Added to the fixed cost, the total cost would be:

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