Answer:
Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.
The goods which are more in demand and on which consumers can afford to spend more, are produced in larger quantity than those goods or services which have lower demand. The price of various factors of production including technology helps to decide production techniques or methods of production. Rational producer intends to use those factors or techniques which has relatively lower price in the market.
Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.
Explanation:
Offer is a definite undertaking or proposal made by one person to another indicating a willingness to enter into a contract. The offer must be communicated to the offeree and must be <span>sufficiently definite and certain.</span>
An offer to enter into a contract can be terminated by lapse of time, r<span>evocation ,
counteroffer, rejection, death or incompetency of the offeror or offeree, destruction of the subject. </span>
Answer:
Stronger
Explanation:
Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.
Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.
