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Elina [12.6K]
3 years ago
15

If investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate ove

r the year is: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Business
1 answer:
serg [7]3 years ago
5 0

Answer:

The question is missing the below details:

inflation rate of Zero % = real rate of 6%

inflation rate of 2.8% = real rate of 3.2%

inflation rate of 5.8% = real rate of 0.2%

Explanation:

The interest rate consists of both the real rate of return and the inflation rate- return meant to compensate investors the prevalent rate of return in the economy.

Nominal rate=real rate+Inflation rate

real rate=nominal rate-inflation rate

at inflation rate of 0

real rate =6%-0

real rate -6%

at inflation rate 2.8%

real rate=6%-2.8%

real rate=3.2%

at inflation rate of 5.8%

real rate=6%-5.8%

real rate=0.2%

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Due to the decrease in the level of water in the lakes of Chapel Hill, the local government wants to reduce the consumption of t
Paul [167]

Answer:

The correct answer is the first option: To impose a minimun price per gallon of tap water consumed that is five cents greater thant the actual price.

Explanation:

To begin with, if the local government is looking forward to reduce the consumption of the tap water due to the decrease in the level of water in the lakes of Chapel Hill, then it must impose a minimum price per gallon of tap water consumed that is five cents greater than the actual price <u>due to the fact that when the citizens continue to consume the tap water they will have to pay 5 cents more every time the exceed the gallon of water consumed</u>, therefore <em><u>paying more than one time the 5 cents extra</u></em> in the consumption instead of paying just one single time the 5 cents due to the simple consumption of water as it is suggested in the other option.

To sum up, if the government charges 5 cents more every gallon of water then the people will decrease their consumption because everytime they passed the gallon of water then they will have to pay another extra 5 cents and so on.  

6 0
3 years ago
Different investments have different levels of ___________ (savings, risk, or interest) and offer different rates of return. For
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I the second one is more risky I'm not really that good at business
5 0
3 years ago
Read 2 more answers
Which of the following is correct?
Eduardwww [97]

Answer:

The correct answer is option D.

Explanation:

The Bureau of Labor Statistics is a unit under the US department of labor. It is tasked with collecting information on the labor market, prices, and productivity and provide statistical data on its basis.  

The unemployment rate is calculated on the basis of data collected through a monthly survey called the current population survey.

The part of the adult population which is either working or do not have a job but are actively looking for one are included in labor force. Discouraged workers or those who are unemployed but not looking for jobs actively are not included.

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6 0
3 years ago
Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of
goldenfox [79]

Answer:

a) Ponzi Products

Income statement

For quarters 1, 2, 3 and 4 of year 202x

                                       Q1                     Q2                  Q3                Q4

Sales revenue                $0                   $550             $600              $0

COGS                              $0                   $500             $500              $0

Operating income          $0                    $50               $100              $0

Since no products are sold during the first and fourth quarter, their respective revenues, COGS and operating income is $0.

b) Ponzi Products

Schedule of Expected Cash Receipts

For quarters 1, 2, 3 and 4 of year 202x

                                       Q1                     Q2                  Q3                Q4

Sales revenue                $0                    $0                $550            $600

Cost of goods man.  ($1,000)                $0                   $0               $0

Net cash receipts     ($1,000)                 $0                $550            $600

c) This question is incomplete, it should say what is Ponzi's net working capital for each quarter?

NWC = current assets - current liabilities

NWC Q1 = $1,000 (Merchandise inventory account, no liabilities)

NWC Q2 = $500 (Merchandise inventory account, no liabilities)

NWC Q3 = $550 (Cash account, no liabilities)

NWC Q4 = $1,150 (Cash account, no liabilities)

6 0
3 years ago
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love history [14]

Answer:

Supply and demand

Explanation:

First is important to remember the supply and demand principle. We can analyze this by the law of supply and demand.

The law of supply states that "the quantity of a good supplied rises as the market price rises, and falls as the price falls".

Conversely, the law of demand says that "the quantity of a good demanded falls as the price rises, and the quantity of a good increase as the price decrease".

For this case if the manufacturing plant close 20% of the people in the area will not have a job and the prices of the real state values will tend to decrease and if the prices decrease the quantity falls from the supply law.

 

6 0
3 years ago
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