An increase in US. Interest rates relative to German interest rates would likely reduce the u. S. Demand for euros and increase the supply of euros for sale.
<h3>What is the impact of an increase in interest rate on a country's currency?</h3>
When the interest rate of a country's currency increases, the value of that currency increases. As a result, there would be an increase in the demand for that currency relative to other currencies.
When the US interest rates increase relative to that of Germany, the value of the dollar would increase. This would lead to an increase in the demand for the dollar and a decrease in demand for the euros.
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Answer:
Nominal gross domestic product (GDP) measures the market value of all the new and legal goods and services produced in a country within a year. While real GDP adjusts nominal GDP to inflation. Since inflation is generally positive, real GDP decreases as inflation increases. The higher the inflation rate, the larger the difference between nominal and real GDP. Depending on which year is used as base year (year 0), the difference that existed in 2010 can be either significant or not.
The difference = ($14,657 / $13,245) - 1 = 10.66%, which means that nominal GDP was 10.66% higher than real GDP. If the base year is 2000 or even 2005/6, the difference is very small since the accumulated inflation would only be 10.66% for all these years. But if the base year was 2008 or even 2009, then the inflation rate is high.
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
Given that we want us to be in a healthy cash position at the end of the year.
We are require to find the way how can we will be in a healthy cash position at the end of the year.
A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.
If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.
Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.
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ram.asked me not to stand
The best thing that you should do in this scenario would be :
- Gather as much as information as you can regarding the issue (maybe by asking input from your associates)
- analyze the issue completely thoroughly
- Believe in yourself and create the best decision based on your analytic
hope this helps
