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>
<span>Disposable income is defined as any and all income that one has less the taxes and other mandatory payments one must make. In Julio's case, this would be the $30,000 he has earned less the $5,000 he pays in taxes yearly. The rent and utilities would not be considered, leaving a disposable income value of $25,000.</span>
Governments implement Administrative trade policies that are designed to make it difficult for imports to enter a country.
<h3>What is Administrative Trade Policies?</h3>
Administrative trade policies are bureaucratic rules designed to make it difficult for imports to enter a country. These are rules and regulations made by the government to control the entry of particular products into the country.
<h3>What is Trade policy ?</h3>
Trade policy is the set of agreements, regulations, and practices by a government that affect trade with foreign countries. Each nation determines its own standards for trading, including its tariffs, subsidies, and regulations.
Trade policies have a significant effect on the international economy and on financial markets. They affect exchange rates, the availability of goods, and the prices that people pay for them, among many other economic factors.
Learn more about Trade policy on:
brainly.com/question/24966568
#SPJ4
