Suppose the real exchange rate of 105 Japanese yen to the dollar moves to 115 yen to the dollar. The dollar has ________________
1 answer:
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Answer:
$800,000
Explanation:
The total amount received by Ms. Jones (A) is given by the following expression:
Where 'I' is Ms. Jones initial investment, 'D' are cash distributions previously received and 'S' is the cash flow from sales.
The amount received by Ms. Jones is:
She would receive $800,000.
In order to determine the effect of the tax on the demand and supply graph, please check the attached image.
A tax is a form of transfer to wealth from businesses to the government. Taxes increase the price of goods and services. As a result of the tax levied on the producers of automobile tires, the cost of making tires would increase. This would make producing tires more expensive.
As a result of the increase in the cost of making tires, the production of tires would fall. As a result, there would be a leftward shift of the supply curve. This would lead to a rise in equilibrium price and a decrease in equilibrium quantity.
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