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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%

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Answer:

Please refer to the below

Explanation:

Journal entry as seen below

Feb 28 Sales tax payable Dr $975

Cash Cr $975

Since Jewelry store collected the sales tax from its customers, sales tax account will be debited because it reduces the balance in the account while cash account will be credited because the balance therein increases due to the sales tax collected.

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3 years ago
How do the pricing strategies for corporations differ from nonprofit organizations?
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3 years ago
The reason for a(n) ____ inventory strategy is to minimize tying up large sums of money for long periods of time and, in additio
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The reason for a <u>just-in-time</u> inventory strategy is to minimize tying up large sums of money for long periods of time and, in addition, to reduce the cost associated with inventory management.

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5 0
1 year ago
Education Planning: Suppose you have just had your first child and you want to begin saving for their college education. You est
luda_lava [24]

To obtain $225,000 in 18 years it is necessary to save or invest at least  1,041.66 every month and 12,500 every year.

We know the total money that needs to be saved to cover college education is $225,000 and the time to save up this money is 18 years. Based on these two details, let's find out how much you need to save every month and every year.

Total of months:

  • 12 months x 18 years = 216 months.

The total you need to save per month:

  • $225,000 / 216 = 1,041.66.

The total you need to save per year:

  • 1,041.66 x 12 = 12,499.99 that can be rounded as 12,500.

Note: This question seems to be incomplete; however, I answered it based on the information provided.

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6 0
2 years ago
Larkin Co. has owned 25% of the common stock of Devon Co. for a number of years, and has the ability to exercise significant inf
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Answer:

C) $250,000

Explanation:

Larkin's investment in Devon at the end of the year = carrying amount at the beginning of the year + Larkin's share of Devon's income - Larkin's share of Devon's dividends

= $200,000 + ($600,000 x 25%) - ($400,000 x 25%)

= $200,000 + $150,000 - $100,000 = $250,000

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