For imports:
You import when there is lack of production in your own country
or when another country offers a cheaper price and/or better quality good than your own country's industry
for exports:
production surplus.
Answer:
$15 trillions
Explanation:
The computation of the GDP is shown below:
GDP = Consumption + Investment + Government purchase + Net exports
where,
Consumption = $10 trillions
Investment = $2.5 trillions
Government purchase = $3 trillions
Net exports = Exports - imports
= $1 trillion - $1.5 trillion
= -$0.5 trillion
So, the GDP would be
= $10 trillions + $2.5 trillions + $3 trillions - $0.5 trillions
= $15 trillions
= 13.5 trillions
Answer
Price of bond = 17.96825
Explanation:
Bond price = ∑(C / 
)+ P /
where
n = no. of years
C = Coupon payments
YTM = interest rate or required yield
P = Par Value of the bond
put values in above equation
price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×
)
= 17.96825
Answer and Explanation:
1. At 0fficial exchange rate:
100 * 0.5 = $50
what I want to buy would be purchased at $50
at market exchange rate:
0.25 x 100 = $25
products bought from this place are not a good deal as I am paying more than the market exchange rate.
2. at equilibrium exchange rate:
100 x 0.25% = $25
the price is $25
3. from answers 1 and 2, I will not want demand Stan's rupees. the products are costly to get.
4. Stan's currency is obviously overvalued. the people from this country now has increased purchasing power so they can purchase goods in dollars, therefore they would be supplying their currency.
5. They will have to buy up the surplus of rupees so that they can easily keep up with maintaining the rupee at half a dollar.
