Answer:
59% - a)increase - b)decrease
Explanation:
First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.
Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).
Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).
With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.
Answer:
Impulse Buying
Explanation:
She isn't thinking about the long term effects of her purchase, like the repayments, but is instead thinking about her short term gain.
Answer:
The current price of the bond would be € 898.87
Explanation:
Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.

Where:
Coupon = 1,000*0.078=78
Yield = 0.089 (or 8.9%)
Face Value= 1,000
n = 20 coupon payments
So, everything should look like this.


Therefore, the price of this bond is € 898.87
Best of luck.
False.... The amount of money taken out of a check for taxes depends on how much you're getting paid.
Answer:
Explanation:
Operating Investing Financing Cycle
3751 (2404) 1381 Growth
1102 2054 (759) Maturity
20 (480) 926 Growth
(2580) (4200) 7508 Introduction
(409) 5581 (2356) Declining
2281 (3451) 1957 Growth
6385 3272 (1958) Maturity
(365) (1678) (3478) Declining
In the introduction phase , cash flow from the operating and investing activities are negative as the company generate cash for investment through financing activities for operation
In the growth phase , the activities begin to pay off gradually while investing is still on simultaneously as operating activities generate a positive cash flow , investing negative and finance positive
In the maturity phase , company start to pay offset debt and buy back the stock as the business appears stable. Operating and financing activities generate a positive cash flow and financing negative.
In declining stage ,sales begin to fall and operating activities nosedive , investing may be positive as assets are being sold off and financing activities negative.