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Nataly_w [17]
3 years ago
9

Suppose that over the past year, the nominal interest rate was 5 percent, the CPI was 150.3 at the end of the year, and the CPI

was 144.2 at the beginning of the year. It follows that a. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 9.2 percent. b. the dollar value of savings increased at 0.8 percent, and the purchasing power of savings increased at 5 percent. c. the dollar value of savings increased at 5 percent, and the purchasing power of savings increased at 0.8 percent. d. the dollar value of savings increased at 9.2 percent, and the purchasing power of savings increased at 5 percent.
Business
1 answer:
makvit [3.9K]3 years ago
3 0

Answer:

The correct answer is option c.

Explanation:

The nominal interest rate was 5 percent.

The CPI was 150.3 at the end of the year, and the CPI was 144.2 at the beginning of the year.

The 5% nominal interest rate means that the dollar value of savings increased at 5%.

Inflation rate

= \frac{(150.3 - 144.2)}{144.2}

= 0.0423 or 4.2%

The real interest rate

= Nominal interest rate - rate of inflation

= 5 - 4.2

= 0.8%

The real interest rate of 0.8% indicates that the purchasing power of savings increased at 0.8%.

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limited government licenses that create a monopoly do so because part 2 a. the license grants a marginal cost advantage. b. the
sammy [17]

Limited government licenses that create a monopoly do so because the license is an entry barrier.

Hence, option C is correct.

What do you mean by monopoly in economics?

Monopoly can be defined as  a situation where there is a dominance of a single seller in the market.  It is opposite to the concept of perfect competition. An unregulated monopoly possesses market power and can influence prices in the overall sector.

The main features revolves around

  • Only One Seller and Various Buyers.
  • No Produce Replacement Option
  • Very Difficult to Enter in Market.
  • Pricing Control.
  • Government Driven.
  • Natural Monopoly.

There are usually three types of monopoly

  • Natural Monopolies.
  • State Monopolies.
  • Un-natural Monopolies.

To know more about monopoly from the given link

brainly.com/question/28841635

#SPJ4

3 0
1 year ago
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc
7nadin3 [17]

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

0.93 = 0 + 0.4867 + 0.333B

0.93 = 0.4867 + 0.333B

0.4433 = 0.333B

B = 0.4433 / 0.333 = 1.33

4 0
3 years ago
why is government intervention often crucial when dealing with both positive and negative externalities?
Dennis_Churaev [7]

Answer:

Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.

Explanation:

A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.

A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.

A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.

To deal with both positive and negative externalities, government intervention is very crucial.

Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.

In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate  the health complications caused by third party inhalation.

6 0
3 years ago
Which of the following comes after a period of recession in the business cycle? A. Stagflation B. A drought C. A boom D. Recover
morpeh [17]
<h3>Hello there!</h3>

Your question asks what comes after the period of recession in the business cycle.

<h3>Answer: D). Recovery</h3>

The reason why answer choice "D). Recovery" is correct because this comes after the period of recession in the business cycle.

Recession is like a "slow down" in the activity of a business. Which means that they aren't receiving any income, GDP, investments, and etc. This would cause a business to decrease while a lot of expenses that the business is getting are increasing. By expensive, I mean the cost to keep the business running and things of that sort.

Businesses go through a time of recession; therefore, they need to "recover" from that. And that's why recovery is the next stage. A business must recover from the "recession" period if they want to keep the business up and running. If the business doesn't recover, then the business will fail.

Once the business can recover from the recession period, then the business can succeed in their plans and execute them, while seeing the profits that they expected to make.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>
7 0
3 years ago
6. Please list and describe your current involvement in the community. Do you volunteer for any local agencies, participate in a
Gwar [14]

there are 5 ways to participate in your community

1 volunteer your time

2 donate your resources

3 shop locally

4 join a class or group

5 support your local sports teams

6 organise your own event

Hope it is helpful

7 0
2 years ago
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