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Yanka [14]
3 years ago
11

Purchasing Power Parity (PPP) theory states that A. the exchange rate between currencies of two countries should be equal to the

ratio of the countries' price levels. B. as the purchasing power of a currency sharply declines (due to hyperinflation) that currency will depreciate against stable currencies. C. the prices of standard commodity baskets in two countries are not related. D. both a) and b)
Business
1 answer:
natulia [17]3 years ago
8 0

Answer:

The correct answer is A and B

Explanation:

PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.

It is grounded on The Law of One Price, which states all the identical goods  have the same price.

As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.

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7 0
3 years ago
Read 2 more answers
Why should your business use Performance Planner?
klasskru [66]

Answer:

The answer is C.It makes recommendations that are validated using machine learning.

Explanation:

A performance planner is a tool used by Google Ads to devise plans in relation to how a business spends on advertising and how changes on advertisement campaigns will affect key metrics and the general performance. It is mostly used as a forecasting tool, with the use of machine learning to show the possibilities or potential outcomes in Google Ads campaigns. This implies that all the conclusions arrived at, are determined by machine learning.

7 0
3 years ago
4.The inflation rate in the U.S. is 3%, while the inflation rate in Japan is 1.5%. The current exchange rate is $1 equal to 105
Nana76 [90]

Answer:

103.4709          

Explanation:

The computation is shown below:

Given that

U.S inflation rate = 3%

Japan inflation rate = 1.5%

Current exchange rate = 105

Now the new exchange rate for the yen is

= Current exchange rate × (1 + Japan inflation rate) ÷ (1 + U.S inflation rate)

= 105 × (1 + 1.5%) ÷ (1 + 3%)

= 105 × (1.015 ÷ 1.03)

= 105 × 0.985436893

= 103.4709          

5 0
3 years ago
There are four closing entries: The first one is to close ___________________. The second one is to close __________________. Th
arlik [135]

Answer:

Revenues, expenses, income summary, dividend or withdraws account

Explanation:

The closing entries for the following accounts are presented below:

1. Service Revenue A/c Dr XXXXX

                To Income Summary XXXXX

(Being revenue account closed)

2. Income summary A/c Dr XXXXX

           To Expense A/c XXXXX

(Being expenses accounts are closed)

3. Income summary A/c Dr XXXXX

               To Retained earning XXXXX

(Being the difference is credited to retained earning that reflected as a profit)

4. Retained earnings A/c Dr XXXXX

      To Dividend A/c XXXXX

(Being dividend account is closed)

8 0
3 years ago
JavaPro Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. JavaPro Systems has budgeted
Iteru [2.4K]

Answer:

$429.60 Favorable

Explanation:

Provided information,

Standard Hours for each product = 3 hours

Standard Cost per hour = $14.00

Actual hours used = 198

Actual output = 80 connectors

Standard hours for actual output = 80 \times 3 = 240 hours

Actual Rate = $14.80 per hour

Direct labor cost variance = Standard Cost - Actual Cost

Standard Cost = Standard hours \times Standard Rae

= 240 \times $14 = $3,360

Actual Cost = 198 \times $14.80 = $2,930.40

Variance = $3,360 - $2,930.40 = $429.60

Since actual cost is less than standard variance is favorable.

$429.60 Favorable

3 0
3 years ago
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