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OleMash [197]
3 years ago
14

If the price of a sofa is $800 in the u.s. and 2400 pesos in argentina, and the exchange rate is 4 pesos per dollar, what is the

real exchange rate?
Business
1 answer:
Vesnalui [34]3 years ago
4 0
The real exchange rate ( RER ) is the ratio of the price level abroad and the domestic price level.
RER = ( Nominal Exchange Rate x Foreign Price ) / ( Domestic Price )
The price of sofa is 2,400 pesos in Argentina and the nominal exchange rate is 4 pesos per dollar (  2,400 : 4 = $600 )
RER = 4 x $600 / $800 = 3
Answer: The Real Exchange Rate is 3 pesos per dollar.
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I believe the answer is: different


The values of pesos from these spanish speaking countries are different depending on how good their performance in the market.

For example,

1000 mexican peso is equal to +/- 50 USD

1000 Argentine peso is equal to +/- 30 USD

8 0
3 years ago
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LO 3 Chad's Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would
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Answer:

B) $(1,813)

Explanation:

Initial investment = 17,550

Annual cashflows = 2,650

Terminal Cashflow = 500

You can solve for NPV using financial calculator with the following inputs;

CF0= -17,550

C01 = 2,650

F01 (Frequency) = 19

C02 = 2,650 + 500 = 3,150

I=16%

Net present value; NPV = -1,812.879 or -1,813 rounded off to the nearest whole number.

4 0
3 years ago
The owner of a local restaurant wants to enhance consumers' attitudes toward his restaurant by changing the affective component
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5 0
3 years ago
The inverse relationship between price and quantity demanded can be graphically illustrated by ______. Multiple choice question.
Oliga [24]

The inverse relationship between price and quantity demanded can be graphically illustrated by <u>a downward sloping curve.</u> Therefore, Option D is the correct statement.

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<h3>What is the relationship between price and quantity?</h3>

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The law of supply and demand is a keystone of present-day economics. According to this theory, the price of a good is inversely associated with the quantity offered.

This makes the experience for plenty of goods because the more high-priced it becomes, much fewer people could be capable of affording it and the demand will finally drop.

Therefore, The inverse relationship between price and quantity demanded can be graphically illustrated by <u>a downward sloping curve.</u> Option D is the correct statement.

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8 0
2 years ago
A company has the following information: Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Averag
andre [41]

Answer:

The average collection period of the company is 18 days

Explanation:

The formula for computing the average collection period of the company is as follows:

Average Collection period = 365 / Accounts receivable turnover ratio

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Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

Putting the values above:

Accounts receivable turnover ratio = $400,000 / $20,000

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Now putting the values of the Accounts receivable turnover ratio in the formula of average collection period:

Average collection period = 365 / 20

= 18.25 or 18 days

8 0
3 years ago
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