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vovikov84 [41]
3 years ago
10

Suppose that the United States fixes the dollar-pound exchange rate. In the process of maintaining the fixed exchange rate, if t

he U.S. central bank starts to realize reduced reserves of pounds, this suggests that_.
Business
1 answer:
maks197457 [2]3 years ago
5 0

Answer:

the fixed dollar-pound exchange rate is consistently below the equilibrium exchange rate that would be produced by a private foreign exchange market.

Explanation:

Fixing an exchange rate means that the government is trying to intervene in valuation of its currency. It is fixing it's currencie's rate to another and using reserves to handle fluctuations in market price.

When the fixed rate is below equillibrum there is surplus of the countrie's currency at the fixed rate. The government will buy this surplus (if not the value will fall) by selling their foreign currency reserves. This is done to maintain the fixed exchange rate.

Reduced reserves of pounds noticed by the Central bank is as a result of fixed price below equilibrium.

You might be interested in
In what positive and negative ways has the Internet changed the conduct and coordination of global business?
Whitepunk [10]

Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft

Explanation:

The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways

Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.

Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.

7 0
3 years ago
During​ recessions, American firms lay off a larger proportion of their workers than Japanese firms do. ​ (It has been claimed t
bekas [8.4K]

Answer:

The answer is "choice a"

Explanation:

In the given question the missing choices is added in attached file please find it.

The additional output produced through hiring an extra item of such an input reflects the marginal product (MP). For the very first time. for example, its marginal labor productivity was increased output generated by recruiting additional work.  

This law diminishing marginal returns as more as units that even the marginal result of even an input, that is hired input.  

In other words, any additional work input would generate less than a previous employee because recruiting additional workers decreases expected revenue on jobs, the laid-off of employees, which means the Labor would grow expected revenue.  

In Japan is laying off fewer employees even despite the slowdown it continues to produce strong outputs. The lower-priced revenues and their work remain constant along with their steady overall performance.  

Your medium product (total) item divided by total work would stay intact. United states staff layover to the other side. It laid-off the staff equals higher marginal labor for overall returns it's going to be higher production besides that, lower labor in the United States could mean an increase in the gross labor output but a larger for Japan, more then, that's why the choice a is correct.

3 0
3 years ago
Toby is purchasing a $15 cake for their mother's birthday.
miss Akunina [59]
Toby should use his debit card. he should use his debit card because it’s only 15 dollars which is not an expensive amount. using his debit card would keep the payments he has to make on his credit card lower
7 0
2 years ago
Mitchell Florists reported assets of $1,400 and equity of $350. What is its debt ratio? (Round your percentage answer to two dec
Luba_88 [7]

Answer:

Debt ratio = 3 : 1

Explanation:

Asset = Capital

Capital = Debt + Equity

I.e Asset = Debt + Equity

1400 = D + 350

D = 1050

Debt ratio = Debt / Equity

Debt ratio = 1050/350

Debt ratio = 3 : 1

8 0
3 years ago
Derek's friend, Jackson, is asking to borrow today with a promise to repay $7,418.87 in four years. If Derek could earn 5.45 per
Aneli [31]

The amount Jackson would be willing to lend is $6,000.

<h3>How much would Jackson be willing to lend?</h3>

In order to determine the  amount Jackson would be willing to lend, the present value of the amount Dereck would repay in 4 years. Present value is the sum of discounted cash flows.

Present value = $7,418.87 / (1.0545^4) = $6,000

To learn more about present value, please check: brainly.com/question/26537392

7 0
2 years ago
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