Your friend has just started a savings account that is currently paying 5% interest. if inflation is expected to be 7% this next year, your friend will be earning a

If inflation is expected to be 7% this next year, your friend will be earning a -2% interest.

Step-by-step explanation:

Real interest rate is the interest rate that takes inflation into account. To calculate for the real interest rate, we have:

Real interest rate = nominal interest rate - inflation rate

Real interest rate = 5% - 7%

Real interest rate = -2%

In this case, the borrower will get paid and your friend will be the one penalized.

Negative interest rates occur infrequently and usually only when a country's central bankers are forced to utilize the monetary policy tool -- where the interest rates are set below zero -- during harsh economic times.

answer; i do believe that the correct answer is (6) points in georgia;

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total