Answer:
5.39%
Explanation:
Given that,
Bond that pays interest annually yields a rate of return = 7.50 percent
Inflation rate for the same period = 2 percent
Real rate = [(1 + nominal rate) ÷ (1 + inflation rate)] - 1
Real rate = [(1 + 0.0750) ÷ (1 + 0.02)] - 1
= (1.075 ÷ 1.02) - 1
= 1.0539 - 1
= 0.0539 or 5.39%
Therefore, the real rate of return on this bond is 5.39%.
Answer:
The percentage change in nominal GDP from 2013 to 2014 was 4.29%
The percentage change in real GDP from 2012 to 2013 was 1.48%
The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE
Explanation:
In order to calculate this we just have to calculate the percentages with a rule of thirds:
To calculate the first one we use the nominal GDP which is the GDP with the current market value:
To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:
To calculate the 2011 to 2012 we insert the values:
So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012
Answer:
$1,125,000
Explanation:
Given;
Gain from asset disposal = $225,000
Book value of asset disposed = $900,000
Therefore,
Amount of cash received from the sale = $900,000 + $225,000
= $1,125,000
This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000
Answer: Option (A) is correct.
Explanation:
Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.
In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.
There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.
This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.
At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.
