Answer:
D. higher than the equilibrium interest rate.
Explanation:
The Fisher equation at equilibrium ; i = r + τe helps you to answer this question whereby;
i = nominal interest rate
r = real interest rate
τe = expected inflation rate
If we re-write it beginning with real interest rate ; r = i - τe .
So, considering the above equation, if the <em>actual</em> inflation rate turns out to be lower than <em>expected</em> , we will have a lower τe and the difference (i - τe) will be bigger making the real interest rate higher than equilibrium.
Answer:
Option (c) is correct.
Explanation:
During an economic activity between the two parties, if the third party is affected (Positively or negatively) by this economic transaction then this is known as externality.
There are two types of externalities:
(i) Positive externality: When the third party is positively affected by an economic transaction between the two parties.
(ii) Negative externality: When the third party is negatively affected by an economic transaction between the two parties.
Now, suppose there is a steel manufacturing company for the consumers. But the people who lives near this company have to bear the cost of the pollution created by the company. This is a negative externality.
Answer:
It can help in many ways one way being they can hold or help hold events in the community.
Explanation:
False it is not a true statement.
Answer:
$30,000 and $360,000
Explanation:
The computation of the gain on the exchange is shown below:
= Cash received + fair value of the computer - undepreciated cost of existing computer
= $120,000 + $360,000 - $450,000
= $30,000
The amount of the computer which is recorded will equal to the fair value of the computer i.e $360,000
For computing the gain we simply added the fair value and deduct the undepreciated cost of an existing computer in the cash received amount so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
