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2 years ago

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

1 answer:

7 0

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

<h3 /><h3>How does expansionary monetary policy affect trade?</h3>

Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).

What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

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A tip of $10 is best for which kind of service?

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3 years ago

Read 2 more answers

Which of the following is true of cartels?

djyliett [7]

Answer:

option c is correct

Explanation:

option c is correct

cartel member are having an advantage to withraw or cheat from contract at any time.

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3 years ago

Sheridan Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An emplo

Artist 52 [7]

Answer:

A. The cost of asset being depreciated is $57,000

B.The amount of salvage value is $5,700

Explanation:

Among the above-mentioned methods of depreciation, the only method that never consider salvage value on its computation of depreciation expense is the double declining method. So let’s use this method to work back the exact amount depreciable amount of an asset.

Formula : 100% / life of an asset x 2

100% / 5 x 2 = 40%

Y1 = $22,800/40 = 57,000

so to check if the amount is correct, let’s do the computation of 5-year depreciation.

Y1 57,000 x 40% = 22,800 (same as the given data)

Y2 (57,000 - 22,800) x 40% =13,680

Y3 (57,000 - 22,800 - 13,680) x 40% = 8,208

Y4 (57,000-22,800 - 13,680 - 8,208) x 40% = 4,925

Y5 (57,000 -22,800 - 13,680 - 8,208 - 4,925) x 40% = 1,687* (adjusted based on the depreciable amount)

B. To compute the salvage value, we simply deduct the total depreciation from the cost of an asset.

57,000 - 51,300 = 5,700

To check:

(57,000 - 5,700) / 5 years = 10,260

8 0

3 years ago

Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totali

eimsori [14]

Answer:

Marriott International

Journal Entries:

a. $300,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Cash $300,000

Sale of Assets $300,000

To record the cash receipts from the sale of assets.

No gain or loss on disposal.

b. $900,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $900,000

Credit Sale of Assets $900,000

To record the cash receipts from the sale of assets.

Sale of Assets $600,000

Gain on Disposal $600,000

To record the gain on the disposal of the furniture.

c. $100,000 cash

Debit Sale of Assets $8,000,000

Credit Furniture $8,000,000

To transfer the account to sale of assets account.

Debit Accumulated Depreciation $7,700,000

Credit Sale of Assets $7,700,000

To transfer the account to sale of assets account.

Debit Cash $100,000

Credit Sale of Assets $100,000

To record the cash receipts from the sale of assets.

Loss on Disposal $200,000

Sale of Assets $200,000

To record the loss on disposal of the furniture.

2. The disposal of an asset creates either a loss on disposal or a gain on disposal, which is normally regarded as a capital loss or a capital gain, as the case may be.

Explanation:

a) Data and Calculations:

Furniture (cost) ............................... $8,000,000

Accumulated depreciation .............. ...7,700,000

Net book value = $300,000

a. $300,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $300,000

Sale of Assets $300,000

b. $900,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $900,000

Sale of Assets $900,000

c. $100,000 cash

Sale of Assets $8,000,000

Furniture $8,000,000

Accumulated Depreciation $7,700,000

Sale of Assets $7,700,000

Cash $100,000

Sale of Assets $100,000

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3 years ago

A 30-second radio spot for Louies sporting goods cost $650.If the spot is run three times a day for one week, how much will Loui

lisabon 2012 [21]

Answer:

The total amount that Louies spends on advertising=$13,650

Explanation:

To calculate the total amount Louies sporting goods spends on advertising, we express the total expenditure as follows;

Total expenditure=Cost per day×number of days

Cost per day=cost per spot×number of spots in a day

Cost per day=(650×3)=$1,950

Number of days in a week=7 days

replacing;

Total expenditure=Cost per day×number of days

Total expenditure=(1,950×7)

Total expenditure=$13,650

The total amount that Louies spends on advertising=$13,650

5 0

3 years ago