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navik [9.2K]
3 years ago
15

In​ 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate

in​ 1975? How would the purchasing power of your savings have changed over the​ year? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.)
Business
1 answer:
Georgia [21]3 years ago
4 0

Answer:

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the  year.

Explanation:

Data provided:

Interest rates = 7.85 %

The rate of inflation = 12.3 %

Now,

The Real interest rate is calculated as :

Real interest rate = Nominal interest rate - Inflation rate

on substituting the respective values, we get

Real interest rate = 7.85% - 12.3%

Or

The real interest rate = - 4.45%

Here,

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the  year.

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How did the organized medical profession manage to remain free of control by business firms, insurance companies, and hospitals
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Answer and Explanation:

The regulated medical community continued to stay unregulated by corporate organizations, insurance companies, and clinics while retaining the right of doctors to remain uncontrolled from clinics and insurance firms maintained an important feature in Modern medicine.

Specific physicians engaging in private practice were disciplined by the medical profession and forced to leave these practices; freedom from corporate control further strengthened private enterprise and positioned physicians in an enviable competitive position with these organizations.

7 0
3 years ago
Economic growth is _____. the GDP's peak (or highest point), a continual increase in GDP, or the same as GDP
Scilla [17]

i wanna say the answer is A not a 100% sure

6 0
3 years ago
Read 2 more answers
In 1971, under president richard nixon, the federal government passed legislation that "froze" wages and the prices of consumer
kicyunya [14]

The idea behind Nixon's decision to "freeze" wages and prices was inflation affects wages and prices, so freezing those would halt inflation.

When the total demand (AD) exceeds the total supply (AS) of a given item or service in the market, this is referred to as inflation.

As a result, the cost of those goods and services rises. This occurs as a result of people having money, either through high government spending or from high incomes or low loan rates.

Nixon thus decides to maintain a specific level of prices and salaries in order to freeze employment. As a result, the population's purchasing power will be constrained, and prices will eventually balance out.

Read more about Inflation:

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4 0
1 year ago
Read 2 more answers
Federal Bank of America has loaned $9,000 to Southgate Animal Hospital, using a 90-day non-interest-bearing note. The bank disco
eduard

Answer: $180

Explanation:

From the question, Federal Bank of America has loaned $9,000 to Southgate Animal Hospital, using a 90-day non-interest-bearing note. The bank discounted the note at 8%.

Therefore, the debit to Discount on Notes Payable in the general journal will be:

= $9,000 × 8% × 90/360

= $9,000 × 8/100 × 1/4

= $9,000 × 0.08 × 0.25

= $180

The correct answer is $180

It should be noted that we used 360 days for a year.

7 0
3 years ago
The real costs of quality:A. are incurred in the quality control department. B. are frequently overstated in an organization. C.
mars1129 [50]

Answer:

E. rise significantly as defects increase in the finished product.

Explanation:

Real Cost of Quality

This cost is concerned with preventing, finding and correcting product issues relating to quality. It is the total amount used is solving quality related defects. It is the extent to which resources are used to prevent poor quality that are below the standards of the organization. The cost tend to rise whenever there's a rise in the defects found in finished products. This is because it is the cost that is used in correcting or remediating the defects.

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3 years ago
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