They are estimating the Nominal GDP. The Nominal GDP measures the quarterly economic output that occurred in the year. This would analyze production, employment, all the elements in the financial circulation. This is different from the real GDP because here it would include the inflation of prices that occurred. Nominal GDP only reflects on the economical changed within the current year regardless of inflation.
Answer:
b. $524.94
Explanation:
We need to solve for the PTM of a 6 year annuity with quarterly payment discount for 6.25% compounding quarterly as well:
PV $10,438.8800
time 24 (6 years x 4 quarter per year)
rate 0.015625 8 ( 0.0625 / 4 )
The payment every quarter will be for:
PTM $ 524.942
Answer:
According to fisher equation
(1+nominal Interest rate)=(1+real interest rate)(1+inflation)
1) So 1.17=(1+R)(1.13)
1+R=1.17/1.13
R=1.035-1
R=0.0353
Real interest rate = 3.53 percent
2) (1+NIR)= 1.03*1.04
1+ NIR= 1.072
NIR= 0.072
Nominal interest rate = 7.2 percent
A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.
A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.
Explanation:
Answer:
Thee jounal entry for January 1 of Messing Company is done below.
Explanation:
3.5% * 4000 = 140
Date Account Titles Dr Cr
Jan 1 Cash $3,860
Credit Card Expense 140
Sales Revenue 4,000
Answer:
B. Increase production and thus increase the supply.
Explanation:
As the price of Jeans rises, the Levi Strauss is likely to increase production keeping other factors constant as per the law of supply, where quantity is directly proportional to the price of goods and services. As the price of goods increase, the quantity supply of product also increased by supplier or manufacturer to maximize the profit out of the current market condition.
