Answer:
<em>Purchasing power parity (PPP): </em>The principle suggests that if the purchasing powers are the same in two different countries, their exchange rates would be in equilibrium.
<em>Happening:</em> When inflation occurs in the US and it occurs more rapidly than in other nations, the currency, the dollar, will be less attractive to other nations. This means that the dollar's exchange rate with the currency of another nation will increase.
Explanation:
Suppose the rate of exchange between pound and dollar is 1 pound= 1.5 dollar before inflation. When inflation happens it may be 1 pound= 2 dollars.
If it has greater buying power, the currency will be demanded more. The US dollar was more requested before inflation, as 1 pound is spent on buying just $1.5. When inflation occurs, the dollar's buying power goes down and it gets less needed. 1 pound is already being spent on that time but to buy more dollars, 2 dollars.
Currency exchange rates based on many different factors. These factors are interest rates, inflation, public debt, deficits, terms of trade and political stability or the economic performance. Due to the many factors that affects currency exchange rate, it is almost impossible to predict where it is heading.
D. because you Have Caps on all, a symbol, A lower case, and a number
Less than 0 for a linear trend, because the trend is no longer a trend but a FAD.
Answer:
effective interest rate = 4.75 %
Explanation:
given data
principal = $108,000
time = 8 months = 
year
rate = 10%
solution
we get here first interest that is
interest = principal × rate × time .................1
put here value
interest = $108,000 × 10% ×
interest = $7200
so here effective interest rate will be here as
effective interest rate = 
× time ...........2
put here value
effective interest rate = 
×
effective interest rate = 0.04761
effective interest rate = 4.75 %
