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Harlamova29_29 [7]
3 years ago
9

Darla puts her money into a bank account that earns interest. One year later she sees that the account has 6 percent more dollar

s and that her money will buy 7.5 percent more goods.a. The nominal interest rate was 13.5 percent and the inflation rate was 1.5 percent.b. The nominal interest rate was 6 percent and the inflation rate was -1.5 percent.c. The nominal interest rate was 13.5 percent and the inflation rate was 7.5 percent.d. The nominal interest rate was 6 percent and the inflation rate was 7.5 percent.
Business
2 answers:
Stella [2.4K]3 years ago
8 0

Answer: B. The nominal interest rate was 6 percent and the inflation rate was -1.5 percent

Explanation: From the above question, we can see that the nominal interest rate is the actual interest accrued on the account for the period of time the money was kept in the bank without considering any bank charges on the money.

The inflation rate is the percentage increase or decrease in price during a specific period. From the above question the inflation rate is -1.5 (6 - 7.5).

Annette [7]3 years ago
5 0

Answer: b. The nominal interest rate was 6 percent and the inflation rate was -1.5 percent.

Explanation:

Darla noticed a year later that the account had 6% more dollars than it did the year before. This means that there is a nominal interest rate of 6% because that is how much her dollars appreciated by.

The Inflation rate is the rate that measures the sustained increase in general prices of goods and services. Darla's money increased by 6% yet she was able to buy 7.5% more of goods because of that increase. If we remove her 6% gain then we can find out how much she can buy without the gain. Removing the gain would be 7.5 - 6 = 1.5.

Darla without the gain could buy 1.5% more goods. That means that prices must have dropped to enable her buy more goods than she could have with a certain amount of dollars. Seeing as inflation is a rate for an increase in prices, a decrease must be accounted for in the negatives. This means that the INFLATION RATE is -1.5%.

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hjlf

Answer: positive cross elasticity of demand.

   

Explanation: In simple words, cross elasticity refers to the degree of change in the demand of a good with respect to change in the price of another goods.

In case of substitute goods, one good can easily be used in the place of another good. Thus, if the price of one good increases the demand for its substitute good also increases.

Hence from the above we can conclude that substitute goods have positive cross elasticity.

3 0
3 years ago
Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi
VARVARA [1.3K]

Answer:

4,000 units

Explanation:

Given that

Sales volume = 60,000 units

Budgeted production = 54,000 units

Beginning finished goods = 10,000 units

The computation of units for ending finished goods inventory is computed below:-

Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

54,000 = Ending finished goods + 60,000 - 10,000

54,000 = Ending finished goods + 50,000

= 4,000 units

6 0
3 years ago
Regardless of the index we use:
Vitek1552 [10]

Answer:

b. we should get an accurate picture of how all consumer goods and services prices changed from year to year.

Explanation:

Wether it is ased on a fixed goods of goods or based on a changing goods of goods that gets old after time, we should check how is it work with this policy

The goal for the index is to adjust the value of assets by the inflation rate to calcualte the loss for having dollar bills.

6 0
3 years ago
Explain the following factors that influence the choice of funding: risk
konstantin123 [22]

Risk is the major factor to consider when deciding the funding, when funds are provided it is a risk that whether the funds will be received or not.

<h3>What is Risk?</h3>

Risk is the threat of being unable to receive the funds back, this is the highest level of risk, there are many small risks too, but the highest level is losing the money.

There could be a small portion of loss of money or sometimes the debtor completely defaults so not a single penny is retrieved.

Funding is a choice and the debtor should be chose according to the risk appetite of the investor or lender on money.

There are investors who are risk averse are not willing to take the risk and fine with the less amount of returns and there are risk takers, who want high returns in return of high risk of defaulting.

Learn more about Risk at brainly.com/question/27331968#SPJ1

6 0
1 year ago
15pts-- multiple choice!
katrin2010 [14]
Answer: bonds
Explanation: will allow for a risk free option and to gain money from a little bit of time and money
(not 100% sure on answer but I believe it is bonds)
6 0
3 years ago
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