A rise in the domestic real interest rate would cause a fall in net exports and a RISE in the exchange rate.
In general, businesses and consumers spend less when interest rates are high. This is because borrowing money costs more when interest rates are high. As a result, companies frequently turn to the stock market to raise money, which can cause stock values to decline.
An increase in interest rates causes the local currency to appreciate. In comparison to domestic goods and services, import prices decline. Exports see a decline in profitability and competition. Exports decline while imports rise, reducing the net export portion of total demand and spending.
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Answer:
Decimal total dollar denominated return is 0.50
Explanation:
The dollar purchase price of the stock =100/1.4*$1
=71.42857143
*$1
=$71.42857143
today's dollar selling price =120/1.12*$1
=107.1428571
*$1
=$107.1428571
Dollar denominated total return in money terms=$107.1428571
-$71.42857143
=$35.71428571
However the dollar-denominated return in percentage terms is computed the below formula
dollar denominated return %=(today's price-initial price)/initial price
=($107.1428571
-$71.42857143
)/$71.42857143
=0.50 which represents 50%
Answer:
I think it easier in person
Explanation:
This is due to the fact that I can see the people and can understand if people are paying attention or if I need to alter the material a bit.
Answer:
a) $903.3
b) $907.14
c) $909.13
d) $910.47
Explanation:
Data provided in the question:
Principle amount = $675
Now,
Future value = 
here,
n is the number of periods
r is the Annual rate of interest
t is the time in years
Thus,
a) For 6% compounded annually for 5 years
r = 6% = 0.06
n = 1
t = 5
Future value = $675 × 
or
Future value = $675 × 1.338226
or
Future value = $903.3
b) For 6% compounded semiannually for 5 years
r = 6% = 0.06
n = 2
t = 5
Future value = $675 × 
or
Future value = $675 × 1.343916
or
Future value = $907.14
c) For 6% compounded quarterly for 5 years
r = 6% = 0.06
n = 4
t = 5
Future value = $675 × 
or
Future value = $675 × 1.346855
or
Future value = $909.13
d) For 6% compounded monthly for 5 years
r = 6% = 0.06
n = 12
t = 5
Future value = $675 × 
or
Future value = $675 × 1.34885
or
Future value = $910.47
