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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Answer:
$3443.86
Explanation:
a=p(1+r/n)^nt
a=2450(1+.0525/12)^12*6.5
3443.86
Answer:
The correct solution is "$42.94".
Explanation:
The given values are:
D0 = 4
Ks = 15%
As we know,
⇒ 
By using the Gordon Model, we get
⇒ 
($)
Answer:
D : All options are correct
Explanation:
- The marginal buyer is the essence of demand curve while marginal seller is essence of supply curve.
- @ Q = 500 units, Selling Price is set at SP = $35
- @ Q = 500 units, Buying Price is set at BP = $40
- Since, SP ≠ BP our equilibrium price would be $ 37.5 assuming the price elasticity of demand and supply are equal. In any case the equilibrium price would lie in between [ 35 , 40 ] such that to prevent a shortage of units in near future.
- Moreover, if the seller decides to sell at price $35 then he must sell goods greater than 500 units to reach the equilibrium profits. However, it could also lead to excess of units or surplus.
- We see that from selling the goods at SP = $35 while the buyer is willing to pay BP = $40 for 500 goods, the seller would be under-profiting and would be earning $5*500 = $2,500 less than he would at equilibrium price of $40 and selling units greater than 500. Hence, 500 goods is not an efficient quantity of goods.
Answer:
At par
Explanation:
From the question we are informed about Road Hazards with has 12-year bonds outstanding. The interest payments on these bonds are sent directly to each of the individual bondholders. In this case these direct payments are a clear indication that the bonds can accurately be defined as being issued at par. A par bond can be regarded as bond that is been sold at the exact face value, most mind sells at the face value of $1000, that $1000 is the face value, any par bond usually give an investor a yield which matches the amount of coupon that is associated to the bond.
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