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olya-2409 [2.1K]
3 years ago
5

Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and

services is not growing at a similar rate, inflation will eventually occur. According to PPP Theory, what will happen to the U.S. dollar? Why? Explain your answer in a well-constructed and persuasive manner.
Business
1 answer:
SOVA2 [1]3 years ago
4 0

Answer:

<em>Purchasing power parity (PPP): </em>The principle suggests that if the purchasing powers are the same in two different countries, their exchange rates would be in equilibrium.

<em>Happening:</em> When inflation occurs in the US and it occurs more rapidly than in other nations, the currency, the dollar, will be less attractive to other nations. This means that the dollar's exchange rate with the currency of another nation will increase.

Explanation:

Suppose the rate of exchange between pound and dollar is 1 pound= 1.5 dollar before inflation. When inflation happens it may be 1 pound= 2 dollars.

If it has greater buying power, the currency will be demanded more. The US dollar was more requested before inflation, as 1 pound is spent on buying just $1.5. When inflation occurs, the dollar's buying power goes down and it gets less needed. 1 pound is already being spent on that time but to buy more dollars, 2 dollars.

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Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no b
Sveta_85 [38]

Answer:

$136

Explanation:

Date      Transaction       Units         Cost           Total          

3             Purchase             5            $20             $100

10            Sale                     3

17            Purchase            10            $24            $240

20           Sale                     6

23           Sale                     3

30           Purchase           10             $30            $300

using the first in, first out method, the COGS is calculated based on the oldest price of the units in merchandise inventory:

6 units were sold on May 20th, 2 of them costed $20 (May 3rd purchase) per unit = $40, while 4 of them costed $24 (May 17th purchase) = $96. Total COGS = $40 + $96 = $136.

7 0
3 years ago
The use of ___________ is based, in part, on the belief that the term is broader than public relations, and encompasses all comm
Ksivusya [100]

Answer: corporate communications

                             

Explanation: Corporate communications relate to how businesses and organizations interact with specific stakeholders, both internally and externally. These stakeholders include,. customers, media, employees and government etc.

Based on the group being discussed, corporate communications may come in many forms. In conclusion, the communication strategy for a company would generally consist of the printed word, verbal word, and un-spoken interaction.

The communication department of an organisation is responsible for a number of duchies to be performed such as public relations and customer marketing etc.

6 0
4 years ago
Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its ave
ratelena [41]

Answer:

$12.50

Explanation:

Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.

Whereas fixed costs are those costs which remains constant and do not change with the change in activity.

All the following costs are variable costs

                                                          Average Cost per Unit

Direct materials                                   $6.45

Direct labor                                          $3.30

Variable manufacturing overhead     $1.25

Sales commissions                              $1.00

Variable administrative expense       <u>$0.50</u>

Total variable cost per unit                <u>$12.50</u>

All the following costs are fixed costs.

Fixed manufacturing overhead         $3.00

Fixed selling expense                        $1.05

Fixed administrative expense           $0.60

3 0
3 years ago
You are running a hot Internet company. Analysts predict that its earnings will grow at 30% per year for the next five years. Af
Andrej [43]

Answer:

The present value of the future earnings is $51,981,214.36

Explanation:

The present value of the earning can be calculated by discounting the earnings for the next five years along with calculating the terminal value of earnings at the end of the five years when the growth rate in earnings becomes constant and discounting it back to the present value.

Taking the value in millions,

Present Value = 1 * (1+0.3) / (1+0.08)  +  1 * (1+0.3)^2 / (1+0.08)^2  +  

1 * (1+0.3)^3 / (1+0.08)^3  +  1 * (1+0.3)^4 / (1+0.08)^4  +  1 * (1+0.3)^5 / (1+0.08)^5  + [( 1 * (1+0.3)^5 * (1+0.02) / (0.08 - 0.02)) / (1+0.08)^5]

Present value = $51.98121436 million or $51,981,214.36

8 0
3 years ago
Why do infomercials use both strong and weak arguments? to appeal to both high and low involvement consumers because it is neces
Vesna [10]

Answer:

The correct answer is letter "A": to appeal to both high and low involvement consumers.

Explanation:

Strong arguments are those that provide probable support for an idea. Weak arguments fail to provide support for different matters. Then, when talking about marketing, strong arguments are more likely to engage consumers with a product while weak arguments can attract consumers at low levels but the ideas lack reliability.

Thus,<em> infomercials can make use of both strong and weak arguments at different levels of consumer involvement.</em>

4 0
3 years ago
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