Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".
Explanation: If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.
As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.
Answer: Shift to the right
Explanation:
Fertilizers are an important input in wheat production. When the price of fertilizers fall, it leads to a decrease in cost of producing wheat. Thus, producers will supply more wheat in the market. As a result the supply curve for wheat will shift to the right leading to a fall in the price of wheat and an increase in the quantity of wheat sold in the market.
Answer:
$300 million
Explanation:
Data provided in the question
Number of shares outstanding = 20 million
Value per share = $15
So, by considering the above information, the new market cap of the company X is
= Number of shares outstanding × Value per share
= 20 million × $15 per share
= $300 million
To determine the new market cap, we simply multiplied the number of outstanding shares with the per share so that the exact value could come