What would your real rate of interest be if you lent $10,000 at 7% when the inflation rate is 8%? Would it make economic sense to lend the money?

A. 15\%/Yes

B. 700% / YES

C. 8\%/NO

D. 1\%/NO

E. -1%/NO

Answers

Answer 1

Answer: E. . -1%/NO

Explanation:

The following can be deduced from the question:

Nominal interest rate = 7%

Inflation rate = 8%

Real interest rate = Nominal interest rate − Inflation rate.

= 7% - 8%

= -1%

Since the nominal interest rate is lower than the inflation rate, the real interest rate will be negative and this simply means that it doesn't make any economic sense to lend the money.


Related Questions

14) What are the two parts of demand?

Answers

Answer: The two parts of demand are:

• Willingness to buy

• Ability to pay

Explanation:

Demand simply refers to the amount of the goods and services which the buyers want to purchase at a certain price for a particular period of time.

There are two parts of demand which are the willingness of a buyer to purchase a certain good and also the ability to pay by the person.

1. What percent of respondents say they would
have NO way to cover a $400 expense?

Answers

Answer:

Bro the answer:

Explanation:

WORLDWIDE : 40%

AMERICA : 27%

How can being open to transfers help employees in their career growth?

A they galn experience
B. transfers always Include a pay raise
C. they galn approval from the management
D. they have job security​

Answers

The answer would be B hope it helps :)
A) because i think it’s beneficial for employees to have experience in different job sectors

Insurance offers consumers

Answers

Insurance customers don’t have a complicated need they want to choose from a good selected of policies to then get clear responsible prices.

Insurance customers don’t have a complicated need they want to choose from a good selection of policies to then get clear responsible prices.

Insurance is a tool for risk management. You get safeguards against unforeseen financial losses when you purchase insurance. If something unpleasant happens to you, the insurance company pays you or someone else of your choosing. If an accident occurs and you don't have insurance, you may be responsible for paying all costs.

Its objective is to mitigate inadvertent loss and reduce financial uncertainty. This is done by trading the assumption of the risk of a sizable loss and a promise to make payments in the event of one for the payment of a small, predefined fee—an insurance premium—to an accredited insurer.

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Highlight four reasons why a person may start a business
i).....​

Answers

Answer:

To create job opportunities

To earn or make profit

To new skill upskill

To demonstrate the value of entrepreneurs

Explanation:

Only buy on credit, what you can pay for in cash refers to... Group of answer choices Credit Cards Payday Loans Morgages Auto Loans

Answers

Answer:

Credit Cards

Payday Loans

Auto Loans

Explanation:

In the field of economics, credit means to have the ability of having goods or the services before the payment of the goods which can be paid later in the future to the other party.

The following can be bought on credits and can be paid in cash later on. These includes :

Credit cards -- credits card are used to purchased item on credits to which the payment is done on a later date in the future.

Payday loans -- payday loans is a type of loan or money borrowed from someone with an interest that is to be paid in the future.

Auto loans -- auto loans are available to buy a car in credit and repaying the loan in cash to the bank in installments in the future.  

Identify the type of business.

Exporting
does not require setting up any manufacturing plant in the nations the products are marketed. It involves producing goods locally.

Answers

General and legal and political environment

Careers in the Hospitality and Tourism career cluster are
O highly desirable and pay high wages.
O bountiful and expected to continue to grow.
O seldom desirable and pay low wages.
O limited and expected to continue to decline.

Answers

Answer:

B

Explanation:

Edge

Careers in the Hospitality and Tourism career cluster are bountiful and expected to continue to grow. Thus option B is correct.

What are Careers?

Career sectors are means of classifying various career kinds based on shared characteristics. People can use these criteria to help them focus their job options and select a suitable path.

A collection of occupations that emphasize giving people food, lodging, aid to travelers, and enjoyable activities. The abundance of jobs in the travel and hospitality career cluster is anticipated to persist.

The planning, management, and provision of lodging, dining, entertainment, conferences, and tourism, as well as related arranging and community programs including transport services, are all part of a the hospitality and tourism employment cluster. Therefore, option B is the correct option.

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Notices provide a cheap way of communicating the same information to a large number of people but they may not be read, or may be ignored. True or false ?

Answers

Answer:

True

Explanation:

Notices can be regarded as a form of

formal communication to pass information to particular person as well as group of people. This could be inform of invitation to attend a meeting, legal notice from court, announcement of a particular event,

Gross sales is defined as the sales
for
and goods
given to customers.

Answers

Answer:

Gross sales is a metric for the total sales of a company, unadjusted for the costs related to generating those sales. The gross sales formula is calculated by totaling all sale invoices or related revenue transactions


PLZ HELP
How are budgets different from other financial statements?

1. Budgets must be stored in a safe deposit box.


2. Budgets are available at any financial institution.


3. Budgets focus on future spending.


4. Budgets include details from past accounts.

Answers

3, Budgets focus on future spending

Budgets are estimates prepared for a future period of time based on past information. Hence, Option 3 is the correct statement.

What do you mean by Budget?

A budget is an estimate of revenue and expenses for a given future period of time that is typically compiled and re-evaluated on a regular basis.

Thus, Budgets are estimates prepared for a future period of time based on past spending activity. Hence, Option 3 is the correct statement.

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Which statement best explains why interest rates are impprtant when saving money? A lower interest rate allows someone's debt to grow more quickly The higher the interest rate the more cost to save money in a bank The higher the interest rate helps someone's money grow larger over time The lower the interest rate, the less it costs tk save money in a bank

Answers

Answer:

The higher the interest rate helps someone's money grow larger over time

Explanation:

Interest rate is the percentage earned by depositors on their deposit. For example, if a person save $200. If the interest rate is 10%, the person earns $20 on her deposit.

The higher the interest rate, the higher the growth in deposit.

For example if a bank offers a compound interest of 10% on deposit and another bank offers a compound interest of 20% on deposit.  If $200 is deposited, after 3 years, the total amount that would be had in each bank is

$200 x (1.1)^3 = $266.20

$200 x (1.2)^3 = $345.60

It can be seen that the amount after 3 years is higher at the bank with the higher interest rate

Hillary and Stephanie have both borrowed $15,000 from the same bank to buy the same model of a new car. Hillary's credit score is 732 and
Stephanie's credit score is 588. Who is likely to pay a lower finance charge?


Stephanie

Hilary

They will pay the same because they used the same bank

They will pay the same because they bought the same car

Answers

Answer:

Call me at    (470)343-8439

Explanation:

What school did Brittany Bailey go to on a field trip that helped her decided on her career?

Answers

Answer:

she went to the school called Lord duffrent public school.

Explanation:

Answer:

Go to pad let im back

Explanation:

what are two basic types of soup

Answers

Answer:

There are six different types of soup in today's modern kitchen. These types fall into two different categories: clear soup and thick soup. Clear soups include consommé, bouillon and broth.

Explanation:

chicken noodle and french onion. thick soups include cream and purée, such as bisques or cream of tomato.

A stock is priced at $85 per share and pays a quarterly dividend of $2.10 per share. What is the dividend yield per stock share per year?

Answers

The answer will be 9.9

ok so plz do not take these points.
if ur reading this plz listen to ghost by badflower and then answer and tell me what u think and if u have also recently felt like that.

Answers

Answer:

its a good song i think its touching and yes i have recently felt like that.

Explanation:

What is the the effect on the foreign price with a combined domestic production subsidy and consumption tax applied by a small country on the same good at the same level?

Answers

Answer:

The effect these factor will have on Import is that it will lower Imports and decrease in imports = Increase in foreign prices

Explanation:

The effect on the foreign price when there is a combined domestic production subsidy and consumption tax applied on a good at the same level

i) when consumption tax is applied : The consumer price will increase by the amount of the tax and the demand for the good will decrease while the producer price will remain the same

ii) when production subsidy is applied : producer price will increase while the consumer price will remain unchanged

when they are both set at the same level ( i.e. consumption tax and production subsidy )  The producer price = consumer price

The effect these factors will have on Import is that it will lower Imports and decrease in imports = Increase in foreign prices

I have some questions, here they are:

1. Should I tell my parents I'm adopted?

2. Does it take 18 months for twins to be born? Or 9?

3. If I eat myself will I get twice as big or disappear completely?

4.How am I sure I’m the real mom of my kid?

5.How far of a drive is it from Miami to Florida?

6.Why doesn’t the Earth fall down?

7.Is an egg a fruit or a vegetable?

8.If batman parents are died, then how was he born?

please answer these I really need to know

Answers

Answer: 1. You wouldn’t know that your adopted unless someone told you

2.9

3. Die and disappear

4. DNA test

5. Your in Florida

6. Gravitational cling

7. Neither

8. They died after he was born

Explanation:

What should a follow-up letter focus on?
Group of answer choices

full qualifications for the job

showing off technical knowledge

relating relevant background information

thanking interviewers for their time

Answers

Answer:

thanking interviewers for their time

Explanation:

Following a job interview, it has always been recommended that a job candidate should send a follow-up letter to the interviewers. This follow-up letter is expected to focus on many important things among which is "thanking interviewers for their time."

This is to show your appreciation and gratitude for the opportunity given to you and how the interview made the interview session went smoothly for you. You should also add how interested you in the job to the follow-up letter

easy career question above

Answers

The answer is A I think

Have you seen Zack Snyder's Justice League on HBO Max?

Answers

Answer:

YES!

Explanation:

IT WAS AMAZING I WANT MORE DC FILMS LIKE THAG I DON'T CARE IF ITS ON HBO MAX I WANT MORE

FSU's bonds have a face value of $1,000 and are currently quoted at 867.25. The bonds have a coupon rate of 6.5 percent. What is the current yield on these bonds?

Answers

Answer:

the current yield is 7.49%

Explanation:

The computation of the current yield on the bond is shown below:

The current yield is

= Annual coupon payments ÷ Bond price

= ($1,000 ×6.5)  ÷  $867.25

= $65 ÷  $867.25

Hence, the current yield is 7.49%

Write a paragraph (5-8 sentences) that compares and contrasts grants, scholarships, and loans. Be sure to include the pros and cons of each.

Answers

Answer:

he lets talk on here pls

Explanation:

Can we treat all small businesses the same? Why or Why not?

Answers

Answer:

Depends on what you define as small business, if you mean a mom and pop pharmaceutical store across the road that keeps the money within the family and has every member of the family working in the shop to create an infinite amount of revenue for themselves until they hit a profit, then sure. They contribute tax dollars to the community through supplying jobs and creating cheaper cost for locals, which gives incentive to buy more in bulk and thus creating more tax dollars. Unless you are talking about the man in the apartment building who makes home grade meals and sells them cheap to his community, then no. While he is contributing tax dollars all those dollars aren't going back into the community until he buys something with that money, and the people who spent that money just got  a tax free meal that 't go into the community didn't.

Explanation:

70 of 500 respondents say they would visit a trampoline park. What percentage of respondents is this?
a. 14%
b.15.5%
c.17%
d.18.9%

Answers

Answer:

a. 14%

Explanation:

Total respondents = 500

100% = 500

1% = 500 ÷ 100 = 5

Since 1% of the 500 respondents is 5 people...

70 ÷ 5 = 14

70 of 500 respondents say they would visit a trampoline park. Thus, the percentage of respondents is 14%. Therefore, option 'A' is the correct option.

What is a percentage?

Total respondents = 100% = 500

Therefore, 1% = 500 ÷ 100 = 5

Since, we know that 1% of the 500 respondents is 5 people

70 ÷ 5 = 14

A % in mathematics is a quantity or ratio that is stated as a fraction of 100 (from the Latin per centum, "by a hundred"). Although the abbreviations "pct.", "pct.", and occasionally "pc" are also used, the percent symbol, "%," is frequently used to indicate it. A % lacks dimensions and has no associated unit of measurement.

Long before the decimal system was invented, computations in Ancient Rome were frequently done using fractions that were multiples of 1/100. Centesima rerum venalium, for instance, was a 1/100 tax imposed by Augustus on commodities that were sold at auction. These fractions might be calculated in the same way as percentages.

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14. Labor and safety legislation assumes that?

A.safety risks are the cost of having a job

B.workers have a right to a safe workplace

C.employees must choose between family and work​

Answers

Answer:

B.workers have a right to a safe workplace

Explanation:

Labor and safety legislation believes everyone should be safe at work.

A good business meets ________ needs.
please help me


A) specialized
B) future
C)identified
D)likely

Answers

Answer:

b specialized

Explanation:

it the one that makes the most sense

i'm pretty sure it's likely !

In private equity, what does an analyst do?

Answers

a person who does research and analysis of private companies. they preform due diligence, financial modeling and valuation of the companies where investors are willing to invest

Payroll records show employee earnings and any deductions from those earnings.
True
False

Answers

This is true..........
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