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Pavlova-9 [17]
1 year ago
7

in a typical balance of payments crisis part 2 a. the interest parity curve shifts out. b. the interest parity curve shifts in.

c. exchange rate expectations are constant. d. real money supply must rise.
Business
1 answer:
Wewaii [24]1 year ago
6 0

In a typical balance of payments crisis part the interest parity curve shifts in. Capital exodus results from downward pressure on interest rates, whereas imports rise as income levels rise.

As a result, the exchange rate depreciates, moving the BP curve to the right. The I and Y combinations that result in balance of payments equilibrium are provided by the BP curve. A given domestic price level, a certain currency rate, and a specified net foreign debt are used to build the BP curve. When the capital account deficit equals the current account surplus, equilibrium has been reached. Interest rates between two countries must be equal for interest rate parity to persist in a fixed exchange rate regime.

To learn more about payments, click here.

brainly.com/question/15138283

#SPJ4

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Alchen [17]

Answer:

Ans. the rate of return of this invesment is 3.5278% annual.

Explanation:

Hi, what we need to do here is to find the future value of all six payments, beginning when the child turns 12, which will end when he turns 17. One year later (when the child turns 18) he will receive $25,000 per year, for the next 4 years. This is the equation that we need to use (and solve for "r").

\frac{A_{1}((1+r)^{6}-1)  }{r} =\frac{A_{2}((1+r)^{4}-1)  }{r(1+r)^{4} }

Where:

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A2=$25,000

So, everything should look like this

\frac{14,000((1+r)^{6}-1)  }{r} =\frac{25,000((1+r)^{4}-1)  }{r(1+r)^{4} }

As you can see, this would take forever to solve, so what we have to do is to use MS Excel, we have to use the "Goal Seek" function. Please check the MS Excel spread sheet attached to this answer.

Please use this function with the following parameters.

Set Cell: G7

To Value: 0

By changing cell: G2

Ans. 3.5278%

Best of luck.

Download xlsx
5 0
3 years ago
Copper Corporation, a C corporation, had gross receipts of $25 million in 2015, $26 million in 2016, and $23 million in 2017. Go
Aleksandr [31]

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Answer:

The CPI for the given year is 123.

Explanation:

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=\frac{\textrm{cost at given year}}{\textrm{cost at  base year}}

In the base year, the typical family bought 4 loaves of bread at $2 per loaf and 2 bottles of wine for $ 9 per bottle.

Cost at base year =$[(4×2)+(2×9)]

                             =$26

In a given year, bread cost $3 per loaf and wine cost $10 per bottle.

Cost at given year =$[(4×3)+(2×10)]

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The CPI for the given year is

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Answer:

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Haystack, Inc. manufactures machinery used in the mining industry. On January 1, 2017 it leased equipment with a cost of $480,00
HACTEHA [7]

Answer:

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702,000=R*3.993

R=702,000/3.993

R=$175,808

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