Question: please show explanation for your answer. 6. If the nominal interest rate is 10% and the inflation rate is 5%, what is the real interest

please show explanation for your answer.

please show explanation for your answer. 6. If the nominal interest rate

6. If the nominal interest rate is 10% and the inflation rate is 5%, what is the real interest rate? 7. Company A has fixed costs of $9 million and profits of $6 million. Its competitor, Company B, is roughly the same size and this year earned the same profits, $6 million. But it operates with higher fixed costs of $10 million and lower variable costs. What is the degree of operating leverage (DOL) for each company? (Defined here as 1 + Fixed costs/Profit.) Which firm has higher operating leverage? Which firm will likely have higher profits if the economy strengthens

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