Historically, why were high inflation rates associated with high nominal interest rates? A. High inflation leads to a decrease in purchasing power and thus increases the attractiveness of investment over consumption in the short term. B. The real interest rate needs to be high enough so that individuals can expect their savings to have greater purchasing power in the future than in the present. C. Growth in investment and savings is encouraged when consumers are judged to be overspending. D. Individuals will spend more when they expect their investments to increase in value.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Historically, why were high inflation rates associated with high nominal interest rates? A. High inflation leads to a decrease in ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Part 3 Waterways is considering the replacement of an antiquated machine that has been slowing down production because of breakdowns and added maintenance. The operations manager estimates that this machine still has 2 more years of possible use.
Answers (1)
The opportunity cost of a decision is measured in terms of 1. the price of the alternative we choose. 2. sunk cost. 3. time. 4. the next best thing given up. the price of a new opportunity that arises.
Answers (1)
After you send I your FaFSA form, what will you receive back
Answers (1)
Your firm has the option of making an investment in new software that will cost $130,000 today and is estimated to provide the following savings: $35000, $50000, $45000, $25000, $15000 for year 1 through year 5.
Answers (1)
Anne is comparing savings accounts. One account has an interest rate of 1.2 percent compounded yearly, and one account has an interest rate of 1.2 percent compounded monthly. Which account will earn more money in interest? the account that earns 1.
Answers (1)
New Questions in Business
Macrosoft Company reports net income of $65,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $60,000, $12,000, and $18,000, respectively.
No Answers
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)