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Sergio039 [100]
3 years ago
15

Over the past year, you earned a nominal rate of interest of 10% on your money. The inflation rate was 5% over the same period.

The exact actual growth rate of your purchasing power was____________.
Business
1 answer:
zimovet [89]3 years ago
3 0

Answer:

exact actual growth rate of your purchasing power was 4.8%

Explanation:

given data

nominal rate of interest = 10%

inflation rate =  5%

solution

we get here exact actual growth rate that is express as

exact actual growth rate = \frac{1+rate\ of\ interest}{1+inflation\ rate} - 1      ..........................1

put here value and we will get

exact actual growth rate = \frac{1+0.10}{1+0.05} - 1

exact actual growth rate = 4.8 %

so here exact actual growth rate of your purchasing power was 4.8%  

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Suppose the interest on a foreign government bonds is 7.5%, and the current exchange rate is 28 foreign currencies per dollar. I
alexandr1967 [171]

Answer:

implied credit spread =  1.13 %

Explanation:

given data

interest on foreign government bonds = 7.5%

current exchange rate = 28

forward exchange rate = 28.5

risk-free rate = 4.5%

solution

we get here risk free rate by the forward exchange rate that is

F = spot exchange rate × \frac{1+Rr}{1+Rs}   ....................1

put here value

28.5 = 28 ×  \frac{1+Rr}{1+0.045}  

solve it we get

Rr = 0.0637

Rr = 6.37%

so

implied credit spread = interest on foreign government bonds - risk free rate

implied credit spread = 7.5% - 6.37%

implied credit spread =  1.13 %

4 0
3 years ago
Which of these items is a tax deduction?. a)cash awards. b)interest from bonds. c)interest on a home mortgage
wolverine [178]
C)interest on a home mortgage
5 0
3 years ago
Long-term investments tie up money for
Nezavi [6.7K]

Answer:Long-term investments tie up money for More than one year.

One reason why individuals focus on long-term investments is to save for retirement.

A(n) 401(k) allows both employees and employers to contribute to a retirement plan.

5 0
3 years ago
One of the long-run effects of higher government budget deficits is growth in the economy's private sector at the same time the
saveliy_v [14]

Complete Question:

One of the long-run effects of higher government budget deficits:

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B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.

D. an increase in the government's share of the nation's economic activity.

Answer:

D. an increase in the government's share of the nation's economic activity.

Explanation:

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A government budget deficit arises when government expenses exceed it's revenue.

It usually expresses the financial health of a nation over a period of time.

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3 years ago
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Answer:

The non-partisan organization that has set the rules for U.S. presidential and  vice presidential debates since 1987 is discussed below in details.

Explanation:

A non-partisan system is an arrangement of administration or organizations such that general and intermittent elections take place without relating to political parties. there are two types of Non-partisan organizations: De facto and De jure.

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