The real interest rate = 5%
Inflation rate = (CPI 2013 - CPI 2012) / CPI 2012
= (231 - 220) / 220
= 11 / 220
= 0.05 or 5%
Real interest rate = nominal interest rate - inflation rate
= 10% - 5%= 5%
Hence, the real interest rate is 5%
<h3>What is a loan?</h3>
A loan is a financial instrument that allows you to borrow money from a lender in order to finance a purchase or investment. The amount of the loan can be based on specific terms and conditions, and usually requires either an down payment or collateral.
Once you have submitted the application, your lender will contact you for additional information, including your credit history and other relevant details. After reviewing this information, the banker may authorize or decline your loan request according to their discretion. If approved, you will then need to provide documentation such as an applicant profile form (IFS), proof of income/employer verification letter(s), bank statement showing funds available in account etc., before closing the transaction.
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Grand Total + Total Bill Subtotal Sales Tax (7.9%)
Total Tip (20%)
Each Pays + Sales tax of 7.9% towards $80.00 is $6.32
A tip of 20% towards $86.32 is $17.26
does this help?
Answer: the U.S. real interest rate and net exports will both rise.
Explanation: Due to the ongoing war abroad, there would be a reduction in production of goods and services in the affected countries and a rise in the production of goods and services in the safe haven country (US) leading to increased levels of export to meet the demand.
War affects investments negatively. As a result, investments are also moved to the US for safety. However, pressure on US producers and eventual shortage due to increased exports, would lead to inflation and increase in prices of goods and services. To mitigate these effects and to reduce the supply of money, government would increase interest rates.
This explains why both interest rates and export both rise.
