According to the theory of purchasing power parity, if the price level in the united states rises by 5% while the price level in Mexico rises by 6%, then the dollar will.
1..... D. appreciate 1% relative to peso.
The theory of PPP explains that exchange rate is automatically changed according to change in the price level of relative countries . As price level increases more in Mexico by 1% so peso will depreciate by 1% or dollar will appreciate by 1% .
2...... B. Changes in the prices of goods and services not traded internationally.
According to the theory of PPP , the exchange rate of two currencies depends upon prevailing price levels in both the countries. However all goods are not traded , how these not traded goods prices affects exchange rate?. This theory doesn't fully explain this scenario.
Purchasing is the process a business or enterprise makes use of to accumulate goods or services to perform its goals. although there are several companies that try to set standards inside the shopping manner, procedures can range greatly between corporations.
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Explanation:
The journal entry is shown below:
Unearned rent revenue Dr $1,250
To Rent revenue $1,250
(Being the unearned rent revenue is recorded)
The computation is shown below:
= Received amount ÷ number of months × given number of months
= $5,000 ÷ 2 months × 0.5 months
= $1,250
So it include a debit to unearned rent revenue for $1,250 and credit the rent revenue for $1,250
Answer:
Shortage = 182 units
Explanation:
Given:
Quantity demanded = 385
Quantity supplied = 203
Find:
Shortage
Computation:
In economic terms, a shortage occurs when the amount sought exceeds the quantity available at the market price.
Shortage is difference between Quantity demanded and Quantity supplied.
Shortage = Quantity demanded - Quantity supplied
Shortage = 385 - 203
Shortage = 182 units
Answer:
The answer is the market supply curve will shift to the right, and the market price will decrease.
Explanation:
It is likely to the market supply curve will shift to the right, and the market price will decrease.
Answer:
Percentage Change = (Amount in 2017 - Amount in 2016) / Amount in 2016
a. Accounts Receivable
= (175,000 - 140,000) /140,000
= 25%
b. Retained earnings
= (30,000 - (-14,000)) / 14,000
= 314%
c. Sales revenue
= (855,000 - 750,000) / 750,000
= 14%
d. Operating expenses
= (170,000 - 200,000) / 200,000
= -15%
e. Income taxes payable
= (11,000 - 10,000) / 10,000
= 10%