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The real output equivalent to the Real interest rate.That's the correct answer
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Explanation:
Answer:
C. $250000
Explanation:
Given:
Total assets = $600,000
Liabilities = $160,000
Stockholders’ equity = $540,000.
Fair value of the restaurant assets = $680,000
Alice Company pays = $770,000
Goodwill is when a company looking to acquire another company is willing to pay a price significantly higher than the fair market value of the company’s net assets.
Net Assets = Fair value of assets - Total Liabilities
= $680000 - $160,000
= $520,000
Amount of Goodwill = cash paid - net assets
= $770,000 - $520,000
= $250000
As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.
Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.
If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.
You can learn more about role of central bank at
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