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soldier1979 [14.2K]
2 years ago
8

The general price level is 150.00 and people expect it to increase to 156.00 next year. Therefore, the expected rate of inflatio

n equals percent. Moreover, there is a one-year bond that promises to pay $107,000.00 next year and is selling for $100,000.00 in the bond market today. So, the nominal interest rate equals percent, and the ex-ante real interest rate on this bond equals percent. Because of some news about the state of the economy, people revise their expectations of the future price level to 159.00. According to the Fisher Effect, the price of the bond today will change to_______ dollars.
Business
1 answer:
zmey [24]2 years ago
8 0

Answer:

$98,165.14

Explanation:

Note: There are missing word but the full question is attached as picture below

Here, Initial Nominal Interest rate = 7%

Inflation expectation= 4%

So, real return = 3%

Now, investors would want same real return

New inflation = (159 - 150)/150 *100 = 6%

Nominal interest rate = 6 %+ 3% = 9%

Price after 1 year = $107,000

So, current price changes to = $107,000/(1+0.09) = $107,000/1.09 = $98,165.14

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Answer:

an apprenticeship done on the job

Explanation:

An apprenticeship is a method for tutoring new practitioners of a profession.  It entails on-the-job training coupled with some study (classroom work and reading). Apprenticeship is provided by a skilled, experienced, and licensed professional. The apprentice gets to learn practical aspects of a profession while earning.

Aryn would be best with an apprenticeship as she will not spend a lot of time in class. She will, however, acquire the skills she needs. Some apprenticeship may lead to certification.

4 0
3 years ago
suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was importe
Aneli [31]

Suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was imported. Net exports equal $4 billion.

In general, real GDP is calculated by dividing nominal GDP by the GDP deflator (R). For example, if the economy's prices rise by 1% from the base year, the deflation rate is 1.01. If nominal GDP is $1 million, real GDP is calculated as $1,000,000 / $1.01 or $990,099.

Equity and bond values ​​are not included in GDP as they are not reissued annually. They may have been issued last year. Second, the stock a person buys is goods and services, and the company reuses the money invested to buy the asset, so the value is calculated twice.

Learn more about goods and services at

brainly.com/question/25125137

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8 0
1 year ago
What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by iner
noname [10]

The complete question should be:

What is a major distinction between customers who purchase a product because they are brand loyal and those who purchase by inertia?

A) the cost of the product

B) the social risk of the product

C) whether the purchase is made after a compensatory or noncompensatory decision process

D) whether the customers hold a very positive or weak attitude toward the product

Answer: whether the customers hold a very positive or weak attitude toward the product

Explanation:

A consumer who buys a product based on inertia is a consumer who buys a product he/she isn't familiar with but is attracted to purchase, therefore no strong link between the consumer and product. While a consumer who purchases a product he/she is loyal to has a very strong connection to that product.

3 0
2 years ago
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Military defense is funded by:
xxMikexx [17]

Answer: tax payers

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8 0
2 years ago
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Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance
kherson [118]

Answer:

The conversion cost is $95,000

Explanation:

The computation of the conversion cost is shown below:

As we know that

Conversion cost

= Direct Labour + Overheads

where,

Direct labor is $24,000

And, the overhead is $71,000

Now placing these valeus to the above formula

So, the conversion cost is

= $24,000 + $71,000

= $95,000

Hence, the conversion cost is $95,000

7 0
3 years ago
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