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.

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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