Answer:
Explanation:
Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)
rh - periodic interest rate in the home currency
rf - periodic interest rate in the foreign currency
Forward/90 = [1+1%*180/360]/[1+2%*180/360]
Forward = 1.005/1.01 * 90 = 89.55
Forward rate is 89.55 yen/$
Answer:
<em>because the existing models have been in place for so long, they are considered untouchable, the equivalent of an economic law.</em>
Explanation:
The rational economic model is even more widely used in economics because it is easier to measure. Although people have irrational behaviors, they are more subjective, which makes the rational model still the most used by the economy, because through it is possible to measure behavior patterns, statistical data and information relevant to the economy.
Answer:
The Short Run Aggregate Supply Curve Shifts to the Right.
Explanation:
The short run aggregate supply curve shifts to the right because prices increase, and increased prices results in increased supply. However, increased prices drives down demand.
When we say centrally planned economy, this means that the economy is being controlled and managed by the government rather than the individual businesses between the owners and the consumers. There was a time that the Russian economy found it difficult to adjust and the way how they adjusted is by modifying the economy. The modification included free market practices which enabled individual owners to gradually balanced their businesses.
