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3 years ago

The model of aggregate demand and aggregate supply explains the relationship between

1 answer:

6 0

I believe the correct answer is A. The model of aggregate demand and aggregate supply explains the relationship between the price and quantity of a particular good. It is a macroeconomic model explaining the correlation of the price with the output of goods.

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Erin mcqueen purchased 50 shares of bmw, a german stock traded on the frankfurt exchange, for 64.5 euros (€) per share exactly 1

faust18 [17]

Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for 64.5 euros (â‚¬) per share exactly 1 year ago when the exchange rate was 0.67 â‚¬/US$. Today the stock is trading at 71.8 (â‚¬) per share, and the exchange rate is 0.75 â‚¬/US$.

a. Did the depreciate or appreciate relative to the US$ during the past year? Explain.

b. How much in US$ did Erin pay for her 50 shares of BMW when she purchased them a year ago?

c. For how much in US$ can Erin sell her BMW shares today?

d. Ignoring brokerage fees and taxes, how much profit (or loss) in US$ will Erin realize on her BMW stock if she sells it today?

Answer:

a. The euro appreciated against the US dollar.

At the beginning of the past year, the €/$ exchange rate was 0.67. This means $0.67 was required to buy one Euro.

At the end of the year, the €/$ exchange rate was $0.75, meaning $0.75 are needed to buy one Euro.

Since it costs more U.S. dollars to buy one Euro at the end of the year, the USD has depreciated against the euro and the euro has appreciated against the USD .

b. Erin paid $4813.43 for the purchase of 50 BMW shares a year ago.

Share price of BMW a year ago = €64.50

Price for 50 BMW shares = €3225 (€64.50 × 50)

€/$ = 0.67

Price in $ = $4813.432836 (3225/0.67)

c. Erin can sell her BMW shares for $4786.67

Share price of BMW a year ago = €71.8

Price for 50 BMW shares = €3590 (€71.8 × 50)

€/$ = 0.75

Price in $ = $4786.666667 (3590/0.75)

d. Erin will lose $26.76 if she sells today.

Gain or Loss = Today's price ($) - Price a year ago ($)

Gain or Loss = -26.76616915 ($4786.666667 - 4813.432836)

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3 years ago

A new technique for extracting oil and gas—called "fracking"—spurred an economic boom in the formerly sleepy town of Oilville, l

Veronika [31]

Answer: technological discovery; economic dislocation

Explanation:

In the scenario described, Karen had spotted an entrepreneurial opportunity that was created by the new extraction technique, or a technological discovery. When there's a technological discovery, there will be new opportunities for people.

The technological discovery created an oil boom or an economic dislocation. When there's a change in economic conditions as a result of displacement of some workers, we say the affected people have been dislocated from the affected economy, in terms of employment.

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3 years ago

A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company r

Lunna [17]

Answer:e. $3,700 gain.

Explanation:

Par value of Bonds =$100,000

Unamortized premium= $2,700

Carrying/ Book value of bonds= Par value of Bonds +Unamortized premium

= $100,000 + $2,700 =$102,700

Amount at which bonds retired $100,000 x 99% = $99,000

Gain on retirement of bonds =Book value of bonds- Amount at which bonds retired

=$102,700- $99,000 = $3,700

4 0

3 years ago

1. You are the owner of a small business that is a defendant in a lawsuit in federal court. You received bad news from your lawy

Serga [27]

Answer:

Kindly check explanation

Explanation: After the verdict of the judge, as a lawyer who stood for the defendant, the lawyers would want to find a way out of the verdict such that his client could get a more favorable judgment, hence the option to appeal. However, appealing the verdict of a court also has two possible outcomes, which are either winning and getting a more favorable verdict which is avoiding the whole or part of the $50,000 fine or losing again which ultimately results in more expenses incurred during the duration of the legal suit. It could also dent the image of the business as his decision to appeal may be deemed as obstinate.

5 0

4 years ago

Selecting a sample of paid notes and tracing interest to the general ledger account is a test of the PCAOB assertion for

Sphinxa [80]

Answer:

C.completeness

Explanation:

Occurrence means transactions and events that have been recorded or disclosed have occurred and relate to the entity.Existence means whether or not accounts balances and related disclosures related Assets, liabilities and equity interests exist in the financial statements.

Completeness means there are no unrecorded transactions, events and disclosures and all transactions that have occurred has been included in the general ledger/financial statements

Valuation or allocation means that assets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded and related disclosures have been appropriately measured and described.

In this question, interest on sample of paid notes have been traced to the general ledger account, to check that whether the interest on the selected sample has been included in the general ledger and financial statements.Thus the answer shall be C.completeness

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4 years ago