Answer:
1. Increase in real income percentage = 1.5%
2. Rate of inflation = 1.7%
Explanation:
For computing the percentage of how much real income would increase, we have to apply the formulas which are shown below:
The increase in real income percentage would be equal to
= increase in nominal income percentage - increase in price level percentage
= 5.3% - 3.8%
= 1.5%
And, the rate of inflation equals to
Nominal income - the rate of inflation = Real income
2.8% - rate of inflation = 1.1%
So, the rate of inflation = 1.7%
Inflation also influences the ratio of Chinese household debt to gross domestic product (GDP), which jumped to 61.6 per cent last year from 17.9 percent in 2008, a situation made worse by the pandemic.
Business competitiveness:If one country has a much higher rate of inflation than others for a considerable period of time, this will make its exports less price competitive in world markets.
Inflation is a financial risk that investors take on when they invest internationally. While efforts can be made to increase liquidity during times of crisis, inflation can strongly influence bond prices and equities to a lesser degree.
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The answer is: A savings account keeps her savings separate from her spending money
This would help Jacinta in her money management. By restricting her spending to the amount only in the checking account, It would be easier for Jacinta to monitor how much money he could spend during the month without compromising the saving that she need to made for her retirement age.
Answer:
The correct answer is option C.
Explanation:
n economics, we know that the basic problem is the scarcity of resources. These resources have alternative uses. We have unlimited wants and needs. Whenever we decide how to use scarce resources to satisfy our wants and needs, we face a trade-off.
We cannot satisfy all our wants and needs, if we want to satisfy one we have to sacrifice the other. Anytime a person decides to take any action, he/she faces trade-offs. Every individual regardless of his wealth and income is faced with making trade-offs.
Answer:
interest rate r = 6.78 %
Explanation:
given data
investment = $12,000
interest rate = 3.5 percent = 0.035
time = 5 year
interest rate = 7.9 percent = 0.079
time = next 15 year
to find out
What was your annual rate of return over the entire 20 years
solution
we get here interest rate as
interest rate r = ![[(1+r)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1](https://tex.z-dn.net/?f=%5B%281%2Br%29%5E%7Bt1%7D%20%2A%20%281%2Br%29%5E%7Bt2%7D%5D%5E%7B%5Cfrac%7B1%7D%7Bt1%2Bt2%7D%7D%20-%201)
...................1
here t1 is time period for first 5 year and t2 is time i.e next 15 year and r1 and r2 is rate
now put here value we get
interest rate r = ![[(1+)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1](https://tex.z-dn.net/?f=%5B%281%2B%29%5E%7Bt1%7D%20%2A%20%281%2Br%29%5E%7Bt2%7D%5D%5E%7B%5Cfrac%7B1%7D%7Bt1%2Bt2%7D%7D%20-%201)
interest rate r = ![[(1+0.035)^{5} * (1+0.079)^{15}]^{\frac{1}{5+15}} - 1](https://tex.z-dn.net/?f=%5B%281%2B0.035%29%5E%7B5%7D%20%2A%20%281%2B0.079%29%5E%7B15%7D%5D%5E%7B%5Cfrac%7B1%7D%7B5%2B15%7D%7D%20-%201)
interest rate r = 1.0678 - 1
interest rate r = 0.0678
interest rate r = 6.78 %
