1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dimaraw [331]
3 years ago
14

Your friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next

year, your friend will be earning a
Business
2 answers:
kumpel [21]3 years ago
4 0

Answer:

If inflation is expected to be 7% this next year, your friend will be earning a -2% interest.

Step-by-step explanation:

Real interest rate is the interest rate that takes inflation into account. To calculate for the real interest rate, we have:

<em>Real interest rate = nominal interest rate - inflation rate</em>

<em>Real interest rate = 5% - 7%</em>

<em>Real interest rate = -2%</em>

In this case, the borrower will get paid and your friend will be the one penalized.

Negative interest rates occur infrequently and usually only when a country's central bankers are forced to utilize the monetary policy tool -- where the interest rates are set below zero -- during harsh economic times.


qaws [65]3 years ago
3 0

<u>The friend will be earning–(2)%. </u>

<u>The friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next year, friend will be earning–(2)%. </u>

Further explanation:

Real interest rate:

It is an interest rate that is being allowed by the saver, investor receives after allowing the inflation.

Calculate the real interest rate:

Real interest rate = Nominal interest rate - Inflation rate

Real interest rate = 5% - 7%

Real interest rate = -2%

The borrower will get paid and a friend will be penalized.

Negative interest rates occur only when central banks are forced to utilize the monetary policy tool.

<u>Thus, the friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next year, friend will be earning –(2)%. </u>

<u> </u>

Learn more:

1. Interview faults:

<u>brainly.com/question/2070761 </u>

<u> </u>

2. Charging fee in case of credit card

<u>brainly.com/question/2668305 </u>

<u> </u>

3. Consequences of non-payment of monthly credit card payment

<u>brainly.com/question/3211811 </u>

<u> </u>

Answer details:

Grade: High School

Subject: Economics

Chapter: Inflation

Keywords: Your friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next year, your friend will be earning a, penalized, real interest rate, negative interest rates.

You might be interested in
How would you array the following organizations in terms of the depth and breadth of their product lines?
Evgen [1.6K]

Answer:

a. The depth of a solo practice family practitioner is narrow whereas its breadth can be wide.

b. They have wide depth and breadth.

c. It has narrow depth and breadth.

d. They have narrow depth and narrow breadth.

Explanation:

Depth means number of variants of each product. Breadth means variety of different products offered.

A solo practice family practitioner has limited its practice and decided not to deliver babies. It has narrow breadth whereas depth is high as it can offer counselling service, immediate help to the patient, family planning guidance and so on.

Multi specialty group has wide depth and breadth as it offers group practice at different locations.

An academic medical center will have narrow depth and breadth as there is only medical studies available to the students and they do not have variety of subjects to choose from.

Shouldice Hospital has narrow depth and breadth as it offers only short stay surgeries. They include hernia repair and appendix. Patients with majors surgeries are not welcomed here.

5 0
3 years ago
Which of the following is a mutually exclusive cost pool used in activity-based cost accounting? a. All of the answers are corre
VikaD [51]

Answer:

The correct answer is A: All of the answer are correct

Explanation:

ABC defines production as consisting of a variety of activities, and it assigns costs to those activities. An activity cost pool is an aggregate of all the costs associated with performing a particular business task, such as making a particular product. By pooling all costs incurred in a particular task, it is simpler to get an accurate estimate of the cost of that task.

Cost pool is created for those costs more closely aligned with the production of goods or services. It is very common to have separate cost pools for each product line. If production batches are of greatly varying lengths, then it has to consider creating cost pools at the batch level, so that it can adequately assign costs based on batch size.

To conclude, the creation of a cost pool and the subsequent assignment of costs will vary according to the length of production and the possibility to discriminate and assign costs.

4 0
3 years ago
Turrubiates Corporation makes a product that uses a material with the following standards: Standard quantity 7.5 liters per unit
Julli [10]

Answer:

Direct material quantity variance= $1,400 unfavorable

Explanation:

Giving the following information:

Standard quantity 7.5 liters per unit Standard price $ 2.00 per liter

Actual production was 3,400 units.

The company used 26,200 liters of direct material.

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7.5*3,400 - 26,200)*2

Direct material quantity variance= (25,500 - 26,200)*2

Direct material quantity variance= $1,400 unfavorable

5 0
3 years ago
Each share of common stock provides the investor with a ________ right that offers the investor the first right to purchase any
Marina CMI [18]
Had to look for the options and the answer the best fits the blank provided is PREEMPTIVE. When we say preemptive right, this is the right granted to certain shareholders in order for them to buy additional shares in the company. Hope this answers your question.
4 0
4 years ago
Read 2 more answers
Please hurry I will mark you brainliest
sammy [17]
In order to better understand what motivates human beings, Maslow proposed that human needs can be organized into a hierarchy.

Maslow organized human needs into a pyramid that includes (from lowest-level to highest-level) physiological, safety, love/belonging, esteem, and self-actualization needs.

Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sex, sleep.

If these needs are not satisfied the human body cannot function optimally. Maslow considered physiological needs the most important as all the other needs become secondary until these needs are met.

2. Safety needs - once an individual’s physiological needs are satisfied, the needs for security and safety become salient. People want to experience order, predictability and control in their lives. These needs can be fulfilled by the family and society (e.g. police, schools, business and medical care).

For example, emotional security, financial security (e.g. employment, social welfare), law and order, freedom from fear, social stability, property, health and wellbeing (e.g. safety against accidents and injury).

3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. Belongingness, refers to a human emotional need for interpersonal relationships, affiliating, connectedness, and being part of a group.

Examples of belongingness needs include friendship, intimacy, trust, and acceptance, receiving and giving affection, and love.

4. Esteem needs are the fourth level in Maslow’s hierarchy and include self-worth, accomplishement and respect. Maslow classified esteem needs into two categories: (i) esteem for oneself (dignity, achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g., status, prestige).

Maslow indicated that the need for respect or reputation is most important for children and adolescents and precedes real self-esteem or dignity.

5. Self-actualization needs are the highest level in Maslow's hierarchy, and refer to the realization of a person's potential, self-fulfillment, seeking personal growth and peak experiences. Maslow (1943) describes this level as the desire to accomplish everything that one can, to become the most that one can be.

Individuals may perceive or focus on this need very specifically. For example, one individual may have a strong desire to become an ideal parent. In another, the desire may be expressed economically, academically or athletically. For others, it may be expressed creatively, in paintings, pictures, or inventions.

PLEASE BRAINLIEST IT WOULD MEAN A LOT :)
3 0
3 years ago
Other questions:
  • The growth of the internet caused many traditional companies to ________ in response to customer demands and a changing marketpl
    13·1 answer
  • Bundling is expected to provide greater profits when the two bundled goods are: i. substitutes. ii. goods that have high fixed c
    7·1 answer
  • Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and
    5·1 answer
  • Would you expect holding cost to go down with increases in maximum capacity?
    5·1 answer
  • While you're working in a sales office, the office manager says that the sales staff should try to use an empathetic tone when s
    10·1 answer
  • Witch type of group discussion requires a lot of active participation from the audience?
    5·2 answers
  • Noncash assets are expected to produce cash over time but the amount of cash they eventually produce could be higher or lower th
    6·1 answer
  • Which of the following is described as an event that a company hosts to thank its loyal​ customers?
    13·1 answer
  • Make a list of at least three items that are important to double check before submitting a loan application to underwriting. Lis
    11·1 answer
  • Sugarland Company is using new cost drivers for its accounting system. One driver material handling for unit variable costs and
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!