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
marshall27 [118]
3 years ago
15

7) Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. (a) What is the nomina

l exchange rate? (b) Suppose the real exchange rate rises by 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change? (c) Suppose the nominal exchange rate rises by 5%, the real exchange rate rises by 8%, and domestic inflation is 3%. What is the foreign inflation rate
Business
1 answer:
konstantin123 [22]3 years ago
4 0

Answer and Explanation:

The computation is shown below:

1. Nominal exchange rate is

= (Real exchange rate) × (foreign price level ÷ domestic price level)

= 10 × (4 ÷ 8)

= 5

2. Change in Nominal exchange rate is

Change in  Nominal exchange rate = (real exchange rate change )  + foreign inflation - domestic inflation

= 10 + 4 - 6

= 8%

3.) foreign inflation rate

= Change in Nominal exchange rate - real exchange rate change + domestic inflation

= 5 - 8 + 3

= 0%

We simply applied the above formulas

You might be interested in
Question #3
love history [14]
It is a trade surplus
5 0
3 years ago
Read 2 more answers
Let's say you graduate from school and you are unemployed or take a low-paying job. What are your debt
elena55 [62]

Answer:

c

Explanation:

7 0
3 years ago
Read 2 more answers
Wren and Zola are on a team that has been assigned to cut production costs in an electronic component production facility. For s
aksik [14]

Answer:

B) Norming

Explanation:

Analyzing the scenario above, it is possible to state that Wren and Zola are in the team development norming stage.

At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

7 0
3 years ago
An aging of a company's accounts receivable indicates that $8500 are estimated to be uncollectible. If Allowance for Doubtful Ac
Evgesh-ka [11]

Answer:

debit to Bad Debt Expense for $5800

Explanation:

Accounts receivable estimated as uncollectible = $8500

Allowance for Doubtful Accounts = $2700

Additional allowance for Doubtful debts required = $8500 - $2700

                                                                                  = $5800

The adjustment to record bad debts for the period will be

Debit Bad debt expense   $5800

Credit Allowance for Doubtful Accounts  $5800

The right option is debit to Bad Debt Expense for $5800

3 0
3 years ago
Suppose American Bank has​ $500 in deposits and​ $200 in reserves and that the required reserve ratio is 10 percent. In this​ si
Alekssandra [29.7K]

Answer:

A. ​$50 in required reserves.

Explanation:

Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.

As per given data

Deposits = $500

Reserves = $200

Required Reserve ratio = 10 percent

Required reserve = Reserve required / Total Deposit

0.1 = Reserve required / $500

Reserve Required = $500 x 0.1

Reserve Required = $50

Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150

6 0
3 years ago
Other questions:
  • Jose deposits a $400 check in College Bank. The reserve requirement is 20%. Required reserves are $_____. Please choose the corr
    12·1 answer
  • Accounting subject , please help me​
    5·1 answer
  • Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a
    14·1 answer
  • Your grandfather has promised to give you​ $500 a year at the end of each of the next four years if you earn Cs or better in all
    7·2 answers
  • If a computer store dumps waste behind its building in violation of local, state, or federal environmental regulations, the resu
    8·1 answer
  • Which of the following is NOT a creative thinking exercise entrepreneurs use to generate ideas?
    10·1 answer
  • Which of the following types of organizational cultures is power-oriented and headed by a leader who is regarded as a caring par
    7·1 answer
  • Under the allowance method, writing off an uncollectible account a. affects only balance sheet accounts. b. affects both balance
    10·1 answer
  • Partial-Year Depreciation Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an
    15·1 answer
  • Fund P has one-third of its funds invested in each of the three stocks. The risk-free rate is 4.5%, and the market is in equilib
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!