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lyudmila [28]
3 years ago
5

If lenders are seeking a 3% real interest rate, the inflation rate is expected to be 6%, and real GDP is growing at 4%, what nom

inal interest rate will lenders ask for? ______________ %.
Business
1 answer:
diamong [38]3 years ago
6 0

Answer:

9%

Explanation:

Real interest rate is the difference between nominal interest rate and inflation rate (i.e. real interest rate = Nominal interest rate - rate of inflation).

Therefore, Nominal interest rate would be calculated by adding real interest rate of 3% to an inflation rate of 6%, which gives 9%.

While the nominal interest rate is the actual interest rate paid to investors, the real interest rate is what gets to to the investor's pocket in terms of purchasing power.

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Hey there!

The correct answer to this is D. Try to remove the obstacle that's blocking the goal. By doing so, we can create a positive change in our life :)

Thanks! :D
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3 years ago
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Increasing the amount of money in the economy results in
Elena-2011 [213]

Answer:

By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.

Explanation:

It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.

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3 years ago
Gray argues that national cultural values affect accounting values. If Country X ranks low on uncertainty avoidance, which of th
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Answer:

d. the country would rank low on the accounting values of conservatism

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While countries that have low uncertainty avoidance are less conservative. They are flexible to change and more willing to take risks.

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3 years ago
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Answer: Product champion

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The product champion is usually a

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3 years ago
How will a new front desk manager address a problem of lateness in a hotel.​
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Answer:

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Hope this helps :)

Explanation:

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