Your answer is Cost-Push.
Cost push inflation – this occurs when there is a rise in the price of raw materials, higher taxes, e.t.c
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:
A royalty is a fee that the franchisee has to pay the franchiser for trading under its name.
Explanation:
A franchise operation is when one party (franchiser) allows another party (franchisee) access to it’s proprietary knowledge, trademark and processes in order to allow the party to sell a product or provide a service under the business’s name. A common example of a franchise operation are KFC outlets across the globe.
A royalty fee is a fee that the franchisee has to pay the franchiser on a common basis such as quarterly or annually for trading under its name. It is generally calculated as a percentage of gross sales. In this case the royalty fee would be 5% of gross sales.
Uninsured motorists. Make sure you have it.
Answer:
Increase the production to decrease the fixed cost per unit
Explanation:
The reason is that if the production increases then the fixed cost will start decrease because the level of production and fixed cost per unit are inversely proportional to each other. Now if the production increases to 1250 ($500/0.4) units then the firm is at no profit and no loss position (Breakeven position). So all the firm has to do is increase its production above 1250 and generate the demand of increased production at the same price.
