1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
JulijaS [17]
3 years ago
10

Assume that the nominal spot exchange rate (USD/EUR) increases by 7.5%, the eurozone price level decreases by 4%, and the US pri

ce level increases by 2.5%. The change in the real exchange rate (%) is closest to:a.0.7%.b.−6.3%.c.14.8%.
Business
1 answer:
nirvana33 [79]3 years ago
7 0

Answer:

a. 0.7%

Explanation:

The computation in the change in the real exchange rate is shown below:

Change in the real exchange rate = {(1 + change in nominal spot exchange rate) × (1 + change in the price level of euro-zone or foreign country)} ÷ (1 + change in the price level of US or domestic country) - 1

= {(1 + 7.5%) × (1 + -4%)} ÷ (1 + 2.5%) - 1

= {(1.075) × (0.96)} ÷ (1.025) - 1

= (1.032) ÷ (1.025) - 1

= 0.7%

You might be interested in
You decide to take $600 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how mu
Ostrovityanka [42]
To determine the increase in the amount of money in the economy brought about the $600 taken out of the piggy bank, we multiply $600 by the decimal equivalent of the percentage given. That is,
                                  ($600) x (0.02) = $12
Hence, your $600 will increase the amount of money in the economy by $12. 
3 0
3 years ago
chase lives in oregon but works for a company in florida. what business trend is this an example of?
xxTIMURxx [149]
Remote Workforce. Apex:)
3 0
3 years ago
Read 2 more answers
The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and fa
ExtremeBDS [4]

Answer: Yes contract has been formed.

Explanation: According to the Uniform Electronic Transaction Act (UETA), electronic transactions are just as binding as transactions made on hardcopy documents. Moreover signatures made electronically reinforces the validity of these elctronic documents.

In the scenario the actual signature was signed on a hard copy by the seller, but it was then faxed back to the listing agent. This faxed copy, showing the faxed signature, is an electronic document that confirms the existence of the contract in accordance with the UETA. This faxed signature is as enforceable as an ink signature.

6 0
3 years ago
Beneficiary is one who unintentionally gains a benefit from a contract between other parties
son4ous [18]
The answer is "incidental beneficiary".

An incidental beneficiary refers to somebody who indirectly acquires an advantage as the aftereffect of the fundamental reason for the trust. An incidental beneficiary is a recipient who isn't a planned recipient. For instance, a grandchild may profit by his/her parent accepting a blessing which could be utilized by the whole family, or which he/she may acquire from the parent. 
6 0
3 years ago
Kara was out jogging and, despite being tired, decided to run one more mile. based on her actions, economists would conclude tha
Contact [7]
Pushes herself and is determined to finish something she started.
7 0
3 years ago
Other questions:
  • Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions
    11·1 answer
  • Programs designed to help only those with low incomes are called
    10·1 answer
  • Transactions involving items produced in the past, such as the sale of a 5-year-old automobile by a used car dealership or the p
    7·1 answer
  • Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:
    11·1 answer
  • Considering the entire organization's operational efficiency is critical in coordinating international business activities, so g
    11·1 answer
  • Jonathan, a salesperson for a food processor manufacturing company, is selling his company's new juicer to prospective customers
    11·2 answers
  • On June 1, Baby Raising Magazine collected cash of $63,000 on future annual subscriptions starting on July t 1. Journalize the t
    7·1 answer
  • How much of a person's income should go to charities?
    13·1 answer
  • Suppose the average income of a citizen of Poland is higher than the average income of a citizen of Romania. You might conclude
    10·2 answers
  • Organizing Select one:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!