Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not?

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The question under discussion represents great significance in the field of economic studies. The following situation is presented to illustrate the importance of the subject: value and consequences of the expected increase in long-run real interest rates are questioned from the perspectives of an accountant and an MBA student. They are interviewed to retrieve the conclusion on the effects of such an increase in real interest rates on the firm where they are currently working. Keeping all other aspects constant, it is possible to predict that their answers will differ significantly.

Such differentiation derives from the fact that the accountant and the MBA student have considerably unlike duties. Thus, they would have perspectives on the subject matter that would focus on different aspects of the problem. One of the reasons is that the long-run real interest rate is closely connected to the inflation rate. It is also possible to predict that the areas of focus will be different. The accountant is more likely to dwell upon the internal matters of the firm, including financial statements (balance sheets, income sheets, cash flow reports, etc.), and he or she would also compare the information retrieved from the financial statement to the growth of interest rates. On the contrary, the MBA student is more likely to concentrate on the firm’s external issues related to the growth of real interest rates (for example, the increase of cost provoked by such growth). In conclusion, it is of high importance to notice that the difference in these two responses is significant because it indicates that each of the employees precisely understands his or her role in the company.

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Academic.Tips. (2022) 'Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not'. 22 November.

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Academic.Tips. (2022, November 22). Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not? https://academic.tips/question/long-run-real-interest-rates-are-expected-to-increase-an-accountant-and-an-mba-student-who-just-finished-his-course-of-managerial-economics-were-interviewed-regarding-the-effect-of-this-increase-k/

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Academic.Tips. 2022. "Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not?" November 22, 2022. https://academic.tips/question/long-run-real-interest-rates-are-expected-to-increase-an-accountant-and-an-mba-student-who-just-finished-his-course-of-managerial-economics-were-interviewed-regarding-the-effect-of-this-increase-k/.

1. Academic.Tips. "Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not?" November 22, 2022. https://academic.tips/question/long-run-real-interest-rates-are-expected-to-increase-an-accountant-and-an-mba-student-who-just-finished-his-course-of-managerial-economics-were-interviewed-regarding-the-effect-of-this-increase-k/.

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Academic.Tips. "Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not?" November 22, 2022. https://academic.tips/question/long-run-real-interest-rates-are-expected-to-increase-an-accountant-and-an-mba-student-who-just-finished-his-course-of-managerial-economics-were-interviewed-regarding-the-effect-of-this-increase-k/.

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"Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) were interviewed regarding the effect of this increase. Keeping all else constant, their answer would likely differ. How do you guess the interviewed will answer?Does the difference in response matters? If yes, why? If not, why not?" Academic.Tips, 22 Nov. 2022, academic.tips/question/long-run-real-interest-rates-are-expected-to-increase-an-accountant-and-an-mba-student-who-just-finished-his-course-of-managerial-economics-were-interviewed-regarding-the-effect-of-this-increase-k/.

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