All categories

1 year 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

brainly.com/question/27463586

#SPJ4

You might be interested in

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is

andrew11 [14]

Answer:

The correct answer is c) $9,000

Explanation:

If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.

$300,000 x 3%= $9,000

$300,000 x 0.03= $9,000

The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000

7 0

3 years ago

If the majority of service customers are satisfied, it is likely that all service customers will be satisfied.

Dafna1 [17]

If the majority of service customers are satisfied, it is likely that all service customers will be satisfied. False

Customer service is the provision of service to customers before, during, and after purchase. This makes it an important part of the customer's value chain. Different industries require different levels of customer service [1], but ultimately, the idea of a well-delivered service is to increase revenue. Awareness of a successful customer service interaction depends on employees who are “adaptive to the customer's personality”. [2] Customer service is often practiced in a way that reflects the company's strategy and values. Good customer service is usually valued by customer loyalty. Customer service is part of a company's intangible assets for some companies and can differentiate them from others in their industry. A great customer service experience can change a customer's overall perception of your company. [3]

Good customer service means consistently meeting customer expectations. Good customer service is fast, easy, personal, and caring. Companies that provide excellent customer service take the time to understand the needs of their unique customer base. J.

Learn more about service customers here

brainly.com/question/1286522

#SPJ4

7 0

1 year ago

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour

Anastasy [175]

Answer:

Total direct material cost= $400,000

Explanation:

Giving the following information:

Direct material: 5 pounds at $8.00 per pound $ 40.00

Total direct material cost= cost per unit* total units.

Suppouse that the production for the period is 10,000 units:

Total direct material cost= (5*8)*10,000= $400,000

3 0

2 years ago

When a company acquires a 20% - 50% interest in another company, this generally results in Group of answer choices a controlling

Softa [21]

Answer:

A significant level of influence.

Explanation:

Whenever the shares of nay company are being purchased by more than 50%, that gives the purchaser the controlling level of influence on that particular company.

Here in this question the level is between 20% - 50%, which is high and can be termed as significant but not any other term that is present in the options to the question.

Hope this helps you out buddy.

Good luck and Thank You.

6 0

2 years ago

If a family spends its entire budget in a given time frame, the family can afford either 90 cans of soup or 60 frozen dinners. A

g100num [7]

Answer:

0.67

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

If the family buys one can of soup, the opportunity cost is the frozen food forgone.

Opportunity cost of one can of soup = 60 / 90 = 0.67

I hope my answer helps you

8 0

3 years ago