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Mumz [18]
4 years ago
12

2.5 If the nominal rate of interest is 4.25 percent and the expected rate of inflation is 1.75 percent, what is the real rate of

interest?
Business
1 answer:
Burka [1]4 years ago
3 0

Answer:

2.5

Explanation:

Real interest rate is the interest rate that has been adjusted for the effect inflation.

Nominal interest rate hasn't been adjusted for the effects of inflation. It is the one more popularly quoted .

Inflation is the rise in general price level.

Real interest rate = nominal interest rate - expected inflation rate

4.25 - 1.75 = 2.5

I hope my answer helps you

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Which of the following is an advantage of utilizing technology?
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Answer:

C. Productivity increases.

Explanation:

Technology is the application of skills, knowledge which could be scientifically in solving problems, it can be in production of good and services.

Technology brings about automation, it saves time and provide efficiency in operation.

It should be noted that Productivity increases is an advantage of utilizing technology all over the world.

7 0
3 years ago
The Bush tax cut reduced the top income tax bracket from 39% to 35% over a ten-year period. Supply and demand analysis predicts
Scilla [17]

Answer:

The options for answering this question would be the following:

A) higher; lower

B) lower; lower

C) higher; higher

D) lower; higher

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Explanation:

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As with other financial assets, bond prices are determined by supply and demand. Each government sets the supply of state bonds, issuing more if necessary. Demand, on the other hand, depends on whether or not it is an interesting investment.

Interest rates can have a major impact on bond demand. If interest rates are lower than the coupon on a bond, the demand for that bond will increase - it represents a better investment. But if interest rates rise above the coupon percentage, demand will drop.  

Some bonds are actively traded, while others may have no activity (there are neither buyers nor sellers  interested) for weeks. As a general category, municipal bonds tend to be more sensitive to supply and demand forces than other fixed income categories. This has the net effect of increasing your market risk: If your bond is not popular with other investors at a time when  you need to sell, the price you will get for the bond in the secondary market will be hit.

5 0
3 years ago
Payback is considered an unsophisticated capital budgeting because it ________. gives explicit consideration to the timing of ca
Zepler [3.9K]

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5 0
4 years ago
Joel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatee’s sales have increased significantly over
Zina [86]

Answer:

If Joel purchases the warehouse, he can rent it to the corporation and charge the highest possible rent within reasonable terms. Joel can avoid double taxation and the corporation will be able to deduct rent expense.

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As an individual, Joel is taxed differently for capital gains in case he sells the warehouse, and that rate is generally lower than corporate tax rates.

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3 years ago
Northern Trail Outfitters (NTO) has created a new onboarding series for customers who have purchased its fitness tracker. Custom
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Answer:

The correct answer is A

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