BUSINESS HIGH SCHOOL

In​ 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate in​ 1975? How would the purchasing power of your savings have changed over the​ year? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) What was the real interest rate in​ 1975?   Real rate of interest in 1975 was nothing​%. ​(Round to two decimal​ places.)

Answers

Answer 1
Answer:

Answer:

The correct answer is -3.963%.

Explanation:

According to the scenario, the given data are as follows:

Interest rate = 7.85%

Rate of inflation = 12.3%

So, we can calculate the real interest rate by using the following method:

Real interest rate =[ (1 + Interest rate) ÷ ( 1 + inflation rate) ] - 1

By putting the value, we get,

Real interest rate =[ (1 + 0.0785) ÷ ( 1 + 0.123) ] - 1

= -3.963%

So, the purchasing power of your savings decreased by 3.963%.

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Answers

Answer:

The correct answer is d) doldrums

Explanation:

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Answers

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C. Buying a cheaper car because with a cheaper car the insurance payment will be less because the "insurance" in the ar will be lower lol

What happens to the individual demand curve as the price of an item increases?

Answers

the individual demand for an item will decrease, causing a downward slope

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Whether an item is large enough to likely influence the decision of an investor or creditor. (b) Constraint that weighs the cost that companies will incur to provide the information against the benefit that financial statement users will gain from having the information available.
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Answers

Andswer:

The question is related to the Concept of Materiality. The concept is used to judge and measure whether an event or a transaction is able to influence the decisions of an investor.

In this scenario, the answer is (c) Obligations that a company expects to pay within the next year or operating cycle, whichever is longer.

Because the size and the nature of such obligations may influence investors to invest or not in the company.

Explanation:

When banks make loans, the money supply increasesdecreases .?

Answers

When banks make loans, the money supply increases. Thus, option A is the correct option.

The process of banks making loans has a direct impact on the money supply within an economy. When a bank grants a loan to a borrower, it creates new money in the form of a deposit. This deposit increases the total amount of money available in the economy.

This process, known as the money creation process or fractional reserve banking, is based on the fact that banks are only required to keep a fraction of their deposits as reserves. The remaining fraction can be lent out, effectively creating new money. As borrowers spend the loaned funds, they enter circulation, further increasing the money supply and stimulating economic activity.

Therefore, when banks make loans, they contribute to the expansion of the money supply, supporting economic growth and facilitating transactions in the economy.

Thus, option A is the correct option.

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Probably the correct formation of the question should be:

When banks make loans, the money supply _____.

a. increases

b. decreases
increases,

though all good things must come an end

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Answers

The coffee shop's practice of counting its inventory of bags of whole bean coffee every Wednesday morning is an example of a periodic inventory tracking system.

In a periodic inventory system, the inventory is not continuously updated in real-time. Instead, physical counts are conducted periodically, typically at regular intervals, to determine the quantity of inventory on hand.

In this case, the coffee shop chooses to conduct inventory counts on a specific day (Wednesday morning) to track the number of bags of whole bean coffee available.

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