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KiRa [710]
3 years ago
14

In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t

he decline in the value of their money. This relationship is referred to as the _________.
Business
1 answer:
choli [55]3 years ago
4 0

Answer:

The answer is Fisher effect

Explanation:

The Fisher Effect is an economic theory depicts the relationship between inflation and interest rates. Real interest rates decreases as inflation increases

The Fisher Effect's formula is:

Real interest rate = the nominal interest rate - the expected inflation rate.

Therefore, Fisher effect occurs in countries here inflation is expected to be high, interest rates also will be high, because investors want compensation for the decline in the value of their money

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In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when: Group of answer choice
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Answer:

In a Chapter 11 bankruptcy, a class of creditors is considered to have accepted the bankruptcy plan when:

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Explanation:

In a Chapter 7 bankruptcy, the business assets are liquidated to pay the creditors.  In a Chapter 11 bankruptcy, the business assets are not liquidated.  Instead, the business is refinanced as the assets and debts are reorganized, making it possible for the continued existence of the business.  This is the reason the agreement of the creditors are usually paramount in the decision to undergo a Chapter 11 bankruptcy, unlike a Chapter 7 bankruptcy.

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The job of an ethics officer is to serve as a counselor for employees
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3 years ago
Pick the correct statements regarding cell references.
seropon [69]

where are the statements?

6 0
2 years ago
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Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

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Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

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This occurs when one party repeatedly holds out for a better deal.
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A breakdown in bargaining happens when one party repeatedly holds our for a better deal. In this cases, private solutions to this kind of externalities is deemed necessary. Though bargaining is quite common among transactions made by economists, it cannot be helped that there are certain problems that arise from this.
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