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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

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Alex and J.J. Both apply for two job openings in the same department at a law firm in Chicago. They both interview very well and
denis23 [38]

Solution :

In the context, it is given Alex and J.J. both are applying for a job openings in a law firm at Chicago. Both of them got the job offer but J.J. got lower salary than Alex. The salaries are different for both J.J and Alex. Some of the possible explanations for the difference in salaries that may be related to some scenarios are :

  • Alex went to higher tier law school  ----  difference in education
  • J.J. is reentering the workforce after two years away  ---  difference in experiences.
  • Alex will be working with a notoriously difficult boss  ---  compensating differentials.
  • Alex is a man and J.J. Is a woman  ---  economic discrimination.

                         

8 0
3 years ago
n a recent year's financial statements, home depot reported the following results. sales $ 95 billion net income 8 billion avera
faltersainse [42]

The  home depot's return on assets is 19.05%

The home depot's return on assets is 8.05% better than the 11% return of lowe's

What is return on assets?

The return on  on assets means the net income of Home Depot as percentage of the average total assets, in other words, the return on assets is the net income divided average total assets , not sales revenue, which is applicable to profit margin

return on assets=net income/average total assets

net income=8 billion

average total assets=42 billion

return on assets=8 billion/42 billion

return on assets=19.05%

difference in return on assets=19.05%-11

difference in return on assets=8.05%

The home depot's return on assets is 8.05% better than the 11% return of lowe's

Find out more about return on assets on:brainly.com/question/23554298

#SPJ1

3 0
2 years ago
A person who saves money for the future by buying a whole life policy A. pays the same premium for the same amount of term cover
Karolina [17]

Answer:

B. is able to accumulate tax-free interest earnings on cash values.

Explanation: whole life insurance policy also known as permanent life insurance,is an insurance policy where people who buy the policy are deferred from paying tax,this policy ensure that you pay the same amount of premium throughout the policy,it is a policy that is not termed and it doesn't expire it can last up to 120years.

6 0
3 years ago
How much something cost is it's ______ value?
Dmitriy789 [7]
How much something cost is it's monetary value.
4 0
3 years ago
Explain instances which render leadership unnecessary
Scilla [17]

Leadership is not needed when:

  • It will make processes inefficient due to time wasting
  • It is being used to oppress people
  • Subordinates don't need leadership

Leadership is usually quite good as it can galvanize subordinates to be better workers due to better organization as well as inspiration.

There are instances where it is not needed however such as when:

  • It slows down processes - sometimes leaders will need to give permission for a subordinate to do something. If this thing is time conscious and the leader is not available to give their ascent, the whole process could suffer.

  • It oppresses people - when a leader is an oppressive one and acts in such a way that their subordinates suffer, that leadership is not needed.

  • Subordinates are fine without it - sometimes workers have the necessary skills and experience to operate independently without a leader. In such a case, a leader is not needed.

In conclusion, while a leader is quite important in many ways, there can be situations where it is best that they are not used.

<em>Find out more at brainly.com/question/24150490.</em>

3 0
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