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Bingel [31]
1 year ago
10

Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat

es as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause: ____________
a. the Swiss demand for dollars to decrease and the dollar will depreciate against the pound.
b. the Swiss demand for dollars to increase and the dollar will depreciate against the Swiss franc.
c. the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.
d. the Swiss demand for dollars to decrease and the dollar will appreciate against the pound.
Business
1 answer:
Salsk061 [2.6K]1 year ago
8 0

The increase in US interest rates relative to the British interest rate would cause the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

<h3>Why would the demand for dollars increase and the dollar appreciate?</h3>

When the interest rates of the US increases relative to that of the Britain, investors would earn a higher rate of return relative to that of Britain. As a result, investors would prefer to invest in the US.

When there is an increase in the demand for the US dollars relative to the Swiss franc, the US dollars would appreciate.

To learn more about interest rates, please check: brainly.com/question/26164549

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The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced:______
Maslowich

Answer:

The correct answer is:

5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. (a)

Explanation:

to calculate the percentage deflation, we will simply calculate the percentage change in price between the years stated. This is calculated as follows:

% change = \%\ change = \frac{P_2 - P_1}{P_1} \times 100\\where:\\P_1 = initial\ price\ index\\P_2 = New\ price\ index\\for\ first\ and\ second\ years\\\therefore \%\ change = \frac{142.5 - 150}{150} = \frac{-7.5}{150}= -0.05  \times 100 = -5\%\\

Note that the negative sign shows a deflation.

if you use the same method for years two and three, you should get -3%, using P₁ as 142.5 and p₂ as 138.2. Hence option 'a' is correct.

7 0
3 years ago
Cars made in the United States by an American-owned company are included in______
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Explanation:

5 0
3 years ago
Which of the following is the least reliable resource for fraud statistics? a. Fraud perpetrators. b. FBI agencies. c. Health ag
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Answer:

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Explanation:

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3 0
3 years ago
. What is a great system to manage money and prevent taking too much from one category? Please describe the
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4 0
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The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sal
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Answer:

<u>Favourable Changes:</u>

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

<u>Unfavourable Changes:</u>

Cost Of Sales  

Selling Expenses  

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

                                        Erie Corp

                   Vertical Analysis of Income Statement

                                                                2019                    2018

Sales                                                        1,397                    1,122

Less Cost Of Sales                                   935                      814

Gross Profit                                               462                      308

<u>Less Operating Expenses</u>

Selling Expenses                                      154                       121

General Expenses                                     88                        77

Operating Income                                   220                       110

<u>Less Non- Operating Expenses</u>

Other Revenue                                            4                          7

Interest Expense                                         2                          9

Income Taxes                                           134                        66

Net Income                                                88                        42

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