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3 years ago

The Fisher effect states that the

Business

1 answer:

tatuchka [14]3 years ago

8 0

Answer:

A. nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.

Explanation:

Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.

Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.

When this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation.

The Fisher effect states that the nominal interest rate is equal to the expected inflation rate plus the equilibrium real interest rate.

Thus, the real interest rate in a particular country's economy equals the nominal interest rate minus the expected inflation rate.

All things being equal (Ceteris paribus), the expected inflation rate of a country's economy would eventually cause an equal rise in the interest rate that the deposits of the country's currency can offer. Also, as inflation increases, the real interest rate falls or decreases.

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If you purchase Swiss Frac (CHF) 50,000 of supplies from Switzerland how much will this cost in US$ today:_________

Elina [12.6K]

Answer: $45647.45

Explanation:

To solve the question above, first we need to note that:

1 USD = 0.912949 Swiss Francs(CHF)

Therefore, we then convert 50,000 Swiss France to United States Dollars and this will be:

= 50000 × 0.912949

= $45647.45

7 0

3 years ago

Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following stand

yan [13]

Answer:

B. $30,000 and $15,000

Explanation:

We can compute this as follows,

We need to calculate flexed budget costs for the production of 125 boots.

Budgeted / boots are as follows,

Leather cost / boot = $240

Direct Labor / boot = $120

The costs that should have been for 125 boots are then,

Leather = 125 * 240 = $30,000

Direct Labor = 125 * 120 = $15,000

Hope that helps.

7 0

3 years ago

When the demand for skilled labor increases, _____________________.

makvit [3.9K]

The correct option is A). the demand curve would shift to the right.

<h3>What happens when the demand for skilled labor increases?</h3>

When the demand for skilled labor get increases, the demand curve would shift to the right.

As the demand for the goods and services increases, the demand for the skilled labor will also increase, which will cause the demand curve shift to the right.

If the demand for the goods and services decreases, the demand for labor will decrease too, and demand curve will shift to the left.

Learn more about demand for skilled labor here:-

brainly.com/question/17323942

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4 0

2 years ago

**Verifiability means that the accounting information:

Svetlanka [38]

Accounting information that has verifiability is one that D. must be capable of being checked for accuracy, completeness and reliability.

<h3>What is verifiability in accounting?</h3>

in accounting, data is considered to be verifiable if a third party can come up with the same information given the chance.

for this to happen, the data needs to be capable of being checked for completeness and reliability.

find out more on verifiability in accounting at brainly.com/question/17031030.

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7 0

2 years ago

In the workplace, racial discrimination is a very serious issue. Consider a company in which 20% of the employees are African-Am

Tema [17]

Answer:

a) It is expected that 8 African-Americans get promotions.

b) There is a 8.6% probability that 5 African-Americans get promotions.

c) There is a 16.2% probability that at five or less African-Americans get promotions.

d) The company may be accused of racial discrimination because the ammount of promotions given to African-Americans is much less than expected if there were no discrimination. The expected value, if there is no discrimination, of having more than 5 promotions for African American employees is 84%.

Explanation:

The question is incomplete.

Complete question:

<em>In the workplace, racial discrimination is a very serious issue. Consider a company in which 20% of the employees are African-American. At the end of the year, promotions are awarded to a group of employees. Out of the 40 promotions awarded, five are African-American. Given that the awarding follows the binomial distribution, B(40,.2).</em>

<em />

<em>a) How many African-Americans would you expect to get promotions? </em>

<em> b) What is the probability that five African-Americans receive promotions? </em>

<em> c) What is the probability that five or fewer African-Americans receive promotions? </em>

<em> d) Do you think the company is suspect of racial discrimination? Explain your thinking.</em>

<em />

a) As this situation can be modeled by a binomial distribution B(40,0.2), the expected number of African-Americans that get promotions can be calculated as the expected value of the binomial distribution:

$X\sim B(40,0.2)\\\\E(X)=np=40*0.2=8$

It is expected that 8 African-Americans get promotions.

b) Accordingly to the binomial distribution, we have:

$P(X=5)=\frac{40!}{5!35!}*(0.2)^5*(0.8)^{35}=658008*0.00032*0.0004= 0.086$

There is a 8.6% probability that 5 African-Americans get promotions.

c) We have to calculate the probabilities for X=0,1,2,3,4 and 5.

$P(X\leq5)=P(X=0)+P(X=1)+P(X=2)+P(X=3)+P(X=4)+P(X=5)\\\\\\P(X=0)=\frac{40!}{0!40!}*0.2^0*0.8^{40}=1*1*0.00013=0\\\\P(X=1)=\frac{40!}{1!39!}*0.2^1*0.8^{39}=40*0.2*0.00017=0.001\\\\P(X=2)=\frac{40!}{2!38!}*0.2^2*0.8^{38}=780*0.04*0.00021=0.007\\\\P(X=3)=\frac{40!}{3!37!}*0.2^3*0.8^{37}=9880*0.008*0.00026=0.021\\\\P(X=4)=\frac{40!}{4!36!}*0.2^4*0.8^{36}=91390*0.0016*0.00032=0.047\\\\P(X=5)=\frac{40!}{5!35!}*0.2^5*0.8^{35}=658008*0.00032*0.00041=0.086$

$P(X\leq5)=P(X=0)+P(X=1)+P(X=2)+P(X=3)+P(X=4)+P(X=5)\\\\P(X\leq5)=0+0.001+0.007+0.021+0.047+0.086=0.162$

There is a 16.2% probability that at five or less African-Americans get promotions.

3 0

4 years ago