Thank you for the 5 points
In economics, the Fisher equation is used to determine the
relationship of the nominal interest rate and the real interest rate. This
equation takes into account the effect of inflation. Mathematically this is
expressed as:
Real rate = 
-1
The values given are:
Nominal rate= 10% =
0.1
Inflation=5%=0.05
Substituting known
values and by calculation:
<span>Real rate=0.0476 =
4.76%</span>
Answer:
c. increases
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
The production possibility frontier is graph that shows the two combinations of goods that an economy can produce given its resocurces.
As the production of donuts increases, the amount of beers that would be forgone in order to increase production of donuts rises.
I hope my answer helps you
Answer: Option C
Explanation: In simple words, expenses refers to outflow of money from the pockets or account of any individual or an entity with the objective of acquiring or producing something.
Manufacturing cost refers to the amount of resources that were out flowed the organisation while producing a good or service. Since the resources are getting out flowed, these costs are always recorded as expense over the operational life of the entity.
Labor cost, electricity bill of machines and purchase cost of raw materials etc are some of many examples of manufacturing cost.
Answer:
the European Central Bank (ECB) should engage in a contractionary monetary policy
Explanation:
A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.
The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.
