Help with this please

If a Starbucks tall latte cost $3.20 in the United States and 3 euros in the Euro area, then purchasing-power parity implies the

Nataliya [291]

Answer:

a. .938 If the exchange rate is less than this, it costs more dollars to buy a tall latte in the U.S. than in the Euro area.

Explanation:

We can see in the example that the Euro is cheaper than the dollar in purchasing-power parity. More specifically, the exchange rate is .938 euros per dollar.

This is why it is more expensive to buy a tall latte in the U.S. than in Europe. The Euro is cheaper.

5 0

2 years ago

The theory of mercantilism states that a country’s power depends mainly on its wealth. During the Age of Exploration, this meant

aleksklad [387]

Answer:

A positive balance of trade

Explanation:

The theory of mercantilism states that a country’s power depends mainly on its wealth. During the Age of Exploration, this meant that the prosperity of a nation should depend on a large supply of bullion (silver and gold) and a positive balance of trade. A positive balance of trade implies that exports should exceed imports. There were tariffs on imports. This discouraged importation.

Mercantilism was commonly practised in Europe within the 16th to 18th century.

I hope my answer helps you

4 0

2 years ago

The adjustment for overapplied overhead ______ net income.

tester [92]

Answer:

The adjustment for overapplied overhead decreases cost of goods sold and increases net income

6 0

2 years ago

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production fa

Anna007 [38]