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Leona [35]
2 years ago
9

An increase in the current account deficit will place _______ pressure on the home currency value, other things equal.

Business
1 answer:
Sindrei [870]2 years ago
4 0

When there is an increase in the deficit of the current account, the pressure on the home currency value all things equal would be a downward pressure.

<h3>What happens when there is a current account deficit?</h3>

A current account deficit means that the country is earning less from exporting goods to other countries than it is losing from importing from other nations.

What this means is that more money is flowing out of the country than the money that is coming in. What this leads to a loss in currency value because it points to less demand for the home currency.

This is because the deficit would place a downward pressure on the local currency. On the upside, this decrease in currency value might spur exports which would lead to a better current account balance.

In conclusion, there will be downward pressure.

Find out more on the current account at brainly.com/question/22333470

#SPJ1

You might be interested in
Company X just paid $1.95 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividend
Llana [10]

Answer:

The fair price of stock today is $48.425 and that is the most one should be willing to pay today.

Explanation:

The company's dividend will grow at a constant rate of 4.3% which means that the constant growth model of Dividend Discount Model will be used to calculate the price of a stock today.

The formula for Constant growth model is,

P0 = D0 (1 + g) / r - g

Where,

  • D0 is dividend today
  • r is the required rate of return
  • g is the growth rate in dividend

P0 = 1.95 * (1+0.043) / 0.085 - 0.043

P0 = $48.425

3 0
4 years ago
Which step in the consumer decision-making process is a result of an imbalance between actual and desired states?
IgorC [24]

Answer:

Need Recognition

Explanation:

Consumer decision making process refers to how a consumer decides to satisfy a want and how consumers arrive at a buying decision, which includes identifying the need, availing the required information about the need, measuring the options or alternatives available and then proceeding to buy the product.

Desired state refers to how i.e the way a consumer desires to satisfy his need. Actual state refers to how or the way the need is ultimately satisfied. The gap between the two states i.e the imbalance results into the step of need recognition.

4 0
4 years ago
portfolio beta you have a portfolio with a beta of 2.44. what will be the new portfolio beta if you keep 10 percent of your mone
slamgirl [31]

If you keep 10% of your cash in the previous portfolio and invest 90% in a stock with such a beta of 2.69, the new portfolio's beta will be 2.67.

<h3>Portfolio beta – what is?</h3>

According to the selected stocks betas of the securities that make up a portfolio, portfolio beta describes the relative volatility of a portfolio of individual securities when viewed as a whole.

<h3>What makes a portfolio beta good?</h3>

A gauge for a currency's risk level or volatility in relation to the whole market is its beta value. Therefore, a suitable beta will depend on your objectives and risk tolerance. A beta of 1.0 would've been perfect if you wanted to imitate the larger market within your portfolio, perhaps through an index ETF.

<h3>Briefing:</h3>

New portfolio beta = (0.10 × 2.44) + (0.90× 2.69)

= (0.244 + 2.421)

= 2.67

To know more about portfolio beta visit:

brainly.com/question/15683560

#SPJ4

7 0
1 year ago
In 3-4 sentences describe how economic liberty helps water the "money tree" in a free enterprise.
il63 [147K]

Answer:

It helps giving you the ability to choose what you think is best for your business

Explanation:

Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).

What you need in order to start and run a business? A place to sell those trees, employees, products, infrastructure, etc., and capital to fund all that. All that business plans and models that you will develop in order to have a successful business will require that you make economic decisions, actions. And, in order to make those decisions, you need economic liberty, which is exactly the ability one has to make economic decisions without political, economic or social blocks.

Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?

That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.

6 0
4 years ago
Entry-level jobs usually pay:
julia-pushkina [17]
Depends upon what you call entry level jobs and where you're at i've seen anything from 30k to 70k

6 0
3 years ago
Read 2 more answers
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