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Anvisha [2.4K]
2 years ago
14

Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced

ing statement is valid or invalid.
a. The statement is valid, because the nominal interest rate is the sum of the real interest rate plus inflation, so higher inflation rates would result in higher interest rates.
b. The statement is invalid, because the nominal interest rate is independent of the inflation rate.

If companies borrow from countries with low interest rates, the potential gains from the interest savings will likely be ______________ by the losses from currency appreciation. The currency of a country with a higher inflation rate than the U.S. inflation rate will ____________ over time against the dollar.
Business
1 answer:
lys-0071 [83]2 years ago
6 0

Answer:

b.the statement is invalid because the nominal

Explanation:

pa brainliest po

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Suppose the Bank of Tazi loaned the banks of Tazi 10 million tazes. Suppose also that both the reserve requirement and the perce
4vir4ik [10]

Answer:

See below.

Explanation:

To compute the change in money supply, we first calculate the credit multiplier,

Credit multiplier is calculated as,

Multiplier = 1 / reserve ratio

When the Bank of Tazi loans 10 million to bank while their reserve requirements stay the same, this additional 10 million will be loaned out and the total change in money supply would be

= 10 million * Multiplier

For example if the reserve ratio was 4% then the multiplier = 1 /0.04 = 25

Then the total change in money supply would be 10 * 25 = 250 million.

Hope that helps.

4 0
4 years ago
Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid for immediately following
UNO [17]

Answer:

C. Thursday

Explanation:

Once auctioned on Monday or Tuesday, Treasury Bills are issued to the winning bidders and must be paid on Thrusday immediately following the auction date.

Federal reserves conduct treasury bill auction on Monday or Tuesday. Treasury bills are auctioned weekly and one year Treasury bill are auctioned monthly. Amount of securities represented by non competitive bills are withheld from auction and are filled with average winning yield, these bids are taken priority.

3 0
3 years ago
We can use the Cournot model to derive an equilibrium industry structure. For this purpose, we will define an equilibrium as tha
Nina [5.8K]

Answer:

a. long run equilibrium numbers of firms in the industry are 4

b. Output of each firm will be 16

Explanation:

Under cournot’s equilibrium, the cost function of an individual firm is written as:

C(q) = F + cq

In our case, C(q) is given as

C(q) = 256 + 20q

Therefore, F = 256 and c = 20

At the same time, the demand function is written as:

P(Q) = a - bQ

In our case, P is given as

P = 100 – Q

Therefore, a = 100, b =1

a. Long run equilibrium number of firms in the industry

N = ((a-c)/(bF)^0.5) – 1

N = ((100-20)/(1*256)^0.5) – 1

N = (80/16) – 1 = 4

Therefore, long run equilibrium numbers of firms in the industry are 4

b. Output of each firm will be q = (a-c)/b*(1+N) = (100-20)/1*(1+4) = 80/5 = 16

Therefore, total output of industry is 16*4 = 64

Price = 100-64 = 36

Profit = Revenue – Cost

Revenue of each firm = Price * Output = 36*16 = 576

Cost = 256+20*16 = 576

Therefore, profit = 0

5 0
3 years ago
Toan Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at t
Lerok [7]

Answer:

$129,000

Explanation:

The computation of the unadjsuted cost of goods sold is shown below:

Before that we need to compute the total cost and cost per unit which are as follows

Total cost

= Beginning balance + Direct materials + Direct labor + Manufacturing overhead cost applied

= $66,700 + $494,500 + $158,700 + $269,100

= $989,000

And, Units completed is 23,000 units

So, the cost per unit is

= Total cost ÷ Number of units completed

= $989,000 ÷ 23,000 units

= $43

And, the number of units sold is 3,000 units

So, the cost of good sold unadjusted is

= Number of units sold × cost per unit

= 3,000 units × $43

= $129,000

5 0
3 years ago
Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre
AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × (1+\frac{r}{n})^{nt}

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × (1+\frac{r}{2})^{2\times8}

or

1.5625 = (1+\frac{r}{2})^{16}

or

(1+\frac{r}{2}) = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0
3 years ago
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