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Len [333]
3 years ago
12

If the exchange rate rises, which of the following falls in the open-economy macroeconomic model? a. desired net exports and des

ired net capital outflow b. desired net exports but not desired net capital outflow c. desired net capital outflow but not desired net exports d. neither desired net exports nor desired net capital outflow
Business
1 answer:
Ede4ka [16]3 years ago
8 0

Answer: Option(d) is correct.

Explanation:

Correct option: Neither desired net exports nor desired net capital outflow

If there is increase in the exchange rate, then there will be depreciation of the home currency. This means that now a person have to pay more for the same amount of imported goods.

The exports of a country also increases with increase in the exchange rate. So, the economy became more stronger.

And an economy rises exchange rate for stabilizing the foreign interest rate and domestic interest rate.

If the domestic interest rate is higher than the foreign interest rate then there is a inflow of capital in the home country. So, an economy increases the exchange rate to equal the foreign interest rate and domestic interest rate.

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A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher
adoni [48]

Answer:

A monopolist that practices perfect price discrimination

  • a. creates no deadweight loss.

Explanation:

Theoretically, if a monopolist is able to practice perfect price discrimination:

  1. marginal revenue curve = demand curve
  2. consumer surplus = 0
  3. every customer pays the highest amount that they are willing to pay
  4. production level = perfectly competitive level of output

4 0
3 years ago
On August 31, Planar Corp. exchanged 100,000 shares of its $40 par value common stock for all of the net assets of Sistrock Co.
vlada-n [284]

Answer:

$7,200,000

Explanation:

Calculation to determine At what amount should Planar record the acquisition of Sistrock's net assets

Using this formula

Acquisition of Sistrock's net assets =(Shares of common stock issued ×Common stock fair value per share

Let plug in the formula

Acquisition of Sistrock's net assets=100,000*$72

Acquisition of Sistrock's net assets=$7,200,000

Therefore the amount that Planar should record the acquisition of Sistrock's net assets is $7,200,000

3 0
2 years ago
Kiddie village is a successful daycare center. it focuses on actively developing, finding, and communicating new knowledge to it
Alisiya [41]
<span>Learning
 This is an organisation that encourages the learning of its workforce is constantly changes itself. The idea was begat through the work and research of Peter Senge and his partners. Learning organisations give workplaces that are available to innovative idea, and grasp the idea that answers for progressing business related issues are accessible inside every last one of us</span>
6 0
3 years ago
The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y,
marin [14]

Answer:

will decrease by 40 units.

Explanation:

In supply function for good X the Price of W is Doubled. So any changein the price will increase the PW by double amount. The two times of price of good Y is subtracting from the supply function and price of the W will ultimately decrease the quantity demanded by double effect of each one dollar increase in it. So the supply of good X  will decrease by 40 units.

5 0
3 years ago
A firm's year-end price on its common stock is $55. The firm has a profit margin of 6 percent, total assets of $75 million, a to
Virty [35]

Answer:

34

Explanation:

Price/Earning ratio (PE) = Price per Share ÷ Earnings per share

where,

Earnings per share = Net Income ÷ Number of Common Stock Outstanding

                                = (0.9 x $75 million x 0.06) ÷ 2.5 million shares

                                = 1.62

therefore,

Price/Earning ratio (PE) =  $55 ÷ $1.62 = 33.95 or 34

7 0
2 years ago
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