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USPshnik [31]
3 years ago
13

Which is a true statement?

Business
1 answer:
Softa [21]3 years ago
3 0

Answer:

O A real interest rate that is higher than current inflation is desirable,

Explanation:

The real rate is the nominal rate of interest after considering the inflation rate.  The nominal rate is the interest rate quoted by financial institutions.  It shows the percentage of return expected on a deposit or loan. The inflation rate communicates the rate at which prices are increasing in the economy.

The real rate is equivalent to the nominal minus the inflation rate. An ideal situation is when the real rate is higher than the inflation rate. In such a situation, the rate of money growth is higher than the price increases. It means the invested amount will increase in value. At the end of a period, the invested amounts will buy more goods and services than

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Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the
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decreased

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The same is to be considered

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B. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

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