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3241004551 [841]
2 years ago
13

The theory of purchasing power parity assumes that.

Business
1 answer:
Maurinko [17]2 years ago
5 0

PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

<h3 /><h3>What is purchasing power parity?</h3>

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

Learn more about purchasing power parity here:

brainly.com/question/2286004

#SPJ1

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If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,
GrogVix [38]

Answer:

6.86011 Turkish liras per US dollar

Explanation:

US's inflation 3% for the next 3 years

Turkey's inflation 7% for the next 3 years

current Lira/Dollar spot rate (L/$) = 5.6702 (liras per dollar)

  • inflation rate US = (1 + 0.03)⁵ = 1.159274
  • inflation rate Turkey = (1 + 0.07)⁵ = 1.402552

difference = 1.402552 / 1.159274 = 1.20985 x current spot rate = 1.20985 x 5.6702 = 6.86011

Since the Turkish inflation rate is higher than the American inflation rate, then the Turkish lira will depreciate faster than the US dollar.

5 0
3 years ago
Inc. reported the following information about the production and sale of its only product during the first month of​ operations:
Effectus [21]

Answer:

Cost of Goods Sold = $ 400,000

Explanation:

Units Sold = $360,000/ $225= 1600

Sales ​                                                                  $360,000

Direct materials ​$176,000

Direct labor ​$100,000

Variable factory overhead ​$44,000

Fixed factory overhead ​$80,000

Total Manufacturing Costs   $ 400,000

Variable selling and administrative expenses ​$20,000

Fixed selling and administrative expenses ​$10,000

Cost of Goods Sold = $ 400,000

As ending Inventory Finished Goods is 400 units it is not included in the Cost of Goods Sold.

3 0
3 years ago
Please select the best answer from the choices provided A situation in which quantity demanded is greater than quantity supplied
Black_prince [1.1K]
<span>A situation in which quantity demanded is greater than quantity supplied best describes shortage. Shortage is when any product or service lacks the means to provide or satisfy its demand. A shortage in the product or service usually results to a price increase. On the other hand, a surplus results to a price decrease.</span>
5 0
3 years ago
Read 2 more answers
Joe is hired by a real estate company to complete a roofing job on one of their projects. The job is very specialized, he is und
IceJOKER [234]

Options:

Yes, Joe is an agent who has that authority.

No, Joe is an employee, but the employee does not have that authority.It depends whether Joe signed a written contract for his employment.

Yes, Joe is an employee.

No, not unless he possesses authority from the principal because Joe is an independent contractor.

Answer:No, not unless he possesses authority from the principal because Joe is an independent contractor

Explanation: An independent contractor is a third party engaged by a principal to transact certain specific jobs or accomplish a certain task on his behalf. An independent contractor does not have any power or authority to represent his or her principal especially when he or she is not authorized to do that on behalf of the principal.

JOE DOESN'T HAVE THE POWER OR AUTHORITY TO ENTER INTO ANY CONTRACT OR AGREEMENT WITH ANOTHER ENTITY FOR HIS PRINCIPAL EXCEPT WHEN GIVEN THE AUTHORITY TO DO SO.

4 0
3 years ago
Why is expected income a large factor in choosing a retirement plan in which to invest?
RoseWind [281]
<span>Because you will be investing in it for the rest of your life. The yields should match the amount you are able to contribute. By doing this, you will be able the needs that needed to be made on current year while not throwing away the money for the future since the fruit of your retirement plan will be ripped when you're no longer in a productive age, 
</span>
8 0
3 years ago
Read 2 more answers
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