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2 years ago

If purchasing power parity holds, when a country's central bank decreases the money supply, its:_____.

1 answer:

8 0

If purchasing power parity holds, when a country's central bank decreases the money supply, its <u>If purchasing power parity holds, when a country's central bank decreases the money supply, its price level (rises/falls) and its currency (appreciates/depreciates) relative to other currencies in the world. </u>

A theory of exchange rate determination and a means to compare average prices of goods and services between nations is purchasing power parity (PPP).

According to the hypothesis, fluctuations in the spot exchange rate are caused by importers' and exporters' actions, which are prompted by variations in prices across nations.

Alternatively, PPP contends that changes to a nation's current account may have an impact on the value of the currency's exchange rate on the foreign exchange (Forex) market.

In contrast, the interest rate parity theory postulates that fluctuations in the exchange rate are caused by investor actions (whose transactions are reported on the capital account).

The "law of one price" as it pertains to the overall economy is the foundation of PPP theory.

Hence, option A and D is correct.

To learn more about PPP here

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Answer:

B) Children’s clothing only

Explanation:

cost of the expansion $148,000

three mutually exclusive projects:

NPV $221,000 for children’s clothing ≥ $148,000 (initial investment)
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NPV $145,000 for decorator items ≤ $148,000 initial investment

The projects whose NPV is positive should be considered (this eliminates decorator items)

Since the projects are mutually exclusive, only one can be chosen. So the project with the highest NPV is the best project for the store ⇒ children's clothing

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What type of audit occurs at your home or business

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The type of audit that occurs at your home or in the business is called the field. It is because the field is the place like home or business in which the IRS goes to in means of conducting the investigation in regards with them and their tax payer.

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3 years ago

A company had net sales of $660,000, total sales of $810,000, and an average accounts receivable of $78,000. Its accounts receiv

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3 years ago

Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growt

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Answer:

The Current share price is $94.79

Explanation:

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According to given data

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Growth rates:

For 3 years = 29% per year

After 3 years = 7.3% in perpetuity

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We can calculate the price of share using following formula:

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3 years ago

Kansas Enterprises purchased equipment for $73,000 on January 1, 2021. The equipment is expected to have a five-year service lif

Margaret [11]

Answer:

Depreciation expense = $13,130

Book value = $46,740

Explanation:

Depreciation is a method of expensing the cost of an asset.

Depreciation expense using the straight line method = (Cost of asset - salvage value) / useful life

($73,000 - $7,350) / 5 = $13,130

The depreciation expense each year would be $13,130.

Book value = Cost of asset - Depreciation expense

In December 2021, the book value would be = $73,000 - $13,130 = $59,870

In December 2022, the book value would be = $59,870 - $13,130 = $46,740

I hope my answer helps you

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3 years ago