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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

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Auditors may use positive and/or negative forms of confirmation requests for accounts receivable. Of the following, which combin
Alik [6]

Answer:

B

Explanation:

A. Positive confirmation should always be used for large balances

C. Trade receivables is the overlying term for both account receivables and note receivables. There is no distinguish here between large and small balances.

D. The positive form should be used for receivables that are unsatisfactory.

4 0
3 years ago
Which of the following lies primarily within the realm of microeconomics? Question 30 options: ​an empirical analysis of the rel
Monica [59]

A study of supply and demand conditions in the market for orange juice  lies primarily within the realm of microeconomics.

<h3><u>Explanation:</u></h3>

Micro economics is the field of study that deals with the choices that are made by individuals. It deals with study of how the decisions are made by individuals, household and companies regarding the utilization of resources. It always deals with the markets that are associated with the good and services and also with the economic issues associated with individuals.

Adam Smith is the father of micro economics. In the examples given, A study of supply and demand conditions in the market for orange juice is an example of the micro economics. This is because, it deals with the supply and demand conditions in the market of the orange juice that are consumed by individuals.

5 0
4 years ago
I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is
Nitella [24]

Answer:

$15,000

Explanation:

Value of a perpetuality = cash flow / r

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

4 + 0 (10 - 4) = 4

1,000/ 0.04 = 25,000

4 + 1 (10 - 4) = 10

1000 / 0.1 = 10,000

25,000 - 10,000 = 15,000

8 0
3 years ago
A major factor contributing to the growth in the use of direct marketing IMC efforts is:__________
il63 [147K]

Answer:

a. increased use of credit and debit cards and online shopping by consumers

Explanation:

The IMC stands for Integrated marketing strategies in which the focus of the company to promote more and more products in social websites in order to maximize the company sales

The direct marketing could be done via various modes like - television, social sites, print media, etc

Now the major factor i.e contributed to the growth of IMC because of excessive use of cards i.e debit card and credit card for online shopping or for any other purpose

4 0
3 years ago
The expense recognition (matching) principle aims to record (expenses/assets/liabilities) in the same accounting period as the (
Tomtit [17]

Answer:

Adjusting process

Explanation:

The expense recognition (matching) principle aims to record (expenses/assets/liabilities) in the same accounting period as the (expenses/revenues/assets) that are earned as a result of those costs. This principle is a major part of the Adjusting process.

5 0
4 years ago
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