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Anna007 [38]
1 year ago
11

A rise in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

Business
1 answer:
Kisachek [45]1 year ago
5 0

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.

To learn more interest rate would cause a fall in net exports and a RISE  about:

brainly.com/question/28475254

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Which economic system has the most government control
Hatshy [7]
The answer you are looking for is a planned economy

4 0
3 years ago
Which of the following forms provides the broadest coverage under an employee theft coverage form?
Anvisha [2.4K]

Answer: (D) Blanket position

Explanation:

The blanket position is one of the type of form that helps in providing the broadcast coverage that covers all the employees in all type of position. It is also know as the blanket fidelity.

The main purpose of the blanket position bond is that for providing the employees theft coverage in the form of coverage securities, money and the properties.

The coverage is basically base on the different types of designed position and may also differ according to the different types of positions.      

 Therefore, Option (D) is correct.

8 0
3 years ago
Suppose payments will be made for 7 1/4 years at the end of each month from an ordinary annuity earning interest at the rate of
GaryK [48]

Answer:

The size of the payment = $628.63

Explanation:

<em>An annuity is a series of equal payment or receipt occurring for certain number of period. </em>

The payment in question is an example of an annuity . We can work back the size of the payment using the present value of the ordinary annuity formula stated below

The Present Value of annuity = A × (1- (1+r)^(-n))/r

A- periodic cash flow,= ? r- monthly  rate of interest - 4.25%/12= 0.354%  

n- number of period- (71/4×12)= 87.

Let y represent the size of the payment, so we have

47,000 = y × ( 1-1.00354^(-87))/0.00354

47,000 = y× 74.76

y =47,000/74.7656= 628.63

The size of the payment = $628.63

3 0
3 years ago
Based on the case, you might describe the generic strategy of Allegiant Airlines as:__________.
Dmitry [639]

Answer:

Based on the case, you might describe the generic strategy of Allegiant Airlines as:__________.

Cost Focus.

Explanation:

Allegiant Airlines, in its strategy, does not try to provide cost leadership to the airline industry.  But it offers low prices for passenger tickets for its specific routes.  This implies that the low cost that it offers is focused on a narrow niche market because this niche will provide it with competitive advantage in the industry.  Allegiant Airlines also employs some competitive pricing schemes, which have made it difficult for new and upcoming businesses to enter their niche market.  Allegiant also sells flights from other airlines on its site.  This tactical move increases customers' awareness of its dominance as a low fare service.

4 0
3 years ago
Global Corp expects sales to grow by 9% next year. Assume that Global pays out 50% of its net income. Using the percent of sales
Nookie1986 [14]

Answer:

Global Corporation

Forecasted sales = Current Net Sales x (1 + growth rate)

= $186,200,000 x (1 + 0.09) = $186,200,000 x 1.09 = $202,958,000

Forecasted Net Income = $1,745,438.80 (202,958,000 x 0.86%)

Forecasted Dividend payout = $872,719.40 ($1,745,438.80 x 50%)

Forecasted Retained Earnings = $872,719.40 = $0.87 million

Therefore Forecasted equity = Current Equity + Forecasted Retained Earnings = $22.6 ($21.7 + $0.87)

Explanation:

a) Data and Percentage Calculations:

Income Statement ($million)                           Percentage

Net Sales                                         186.2          100%

Assets Cost Except Depreciation -175.2          94.09%

EBITDA                                              11.0           5.9%

Depreciation and Amortization        -1.1

EBIT                                                    9.9

Interest Income (expense)               -7.7

Pre tax Income                                  2.2

Taxes                                                -0.6

Net Income                                        1.6            0.86%

Dividends paid       50%                  -0.8

Retained Earnings  50%                  0.8

Balance Sheet ($million)

Cash                                                    22.9

Accounts Receivable                           18.1

Inventories                                           15.1

Total Current Assets                          56.1

Net Property, Plant, and Equipment 113.6

Total Assets                                      169.7

Liabilities and Equity

Accounts Payable                             34.4

Long term Debt                               113.6

Total Liabilities                                148.0

Total Stockholders' Equity               21.7

Total Liabilities and Equity            169.7

b) The percent of sales method enables the calculation of the relationship between sales and the line figures in the income statement.  Our interest for this question, is the Retained Earnings which we use to calculate the Stockholders' Equity forecasted balance.  The retained earnings percentage to sales = Retained Earnings as given divided by the net sales figure, and then multiplied by 100.

c) To forecast the sales, we use the growth rate of 9%.  This is equal to the current sales x 1.09.  Based on this sales, it becomes possible to forecast the Retained Earnings, having established the percentage of Retained Earnings to Sales, using the percent of sales method.  We apply the established percentage of Retained Earnings to the Sales figure, to get the Retained Earnings for the forecasted period.  This is then added to the Stockholders' Equity to get the forecasted stockholders' equity.

3 0
4 years ago
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