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Anna35 [415]
3 years ago
13

"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed

among its members?" In a market economy, this question is resolved primarily in the___________.
Business
1 answer:
Sergio039 [100]3 years ago
8 0

A. Money market through borrowing and saving by households and businessesB. Public sector through the mechanism of central planningC. Business sector through the mechanism of advertisingD.Private sector through the earning and spending of income

Private sector through the earning and spending of income

Answer: Option D.

<u>Explanation:</u>

A market economy is a monetary framework wherein the choices in regards to venture, creation and dissemination are guided by the value signals made by the powers of organic market.

The meaning of a market economy is one in which cost and creation is constrained by purchasers and dealers uninhibitedly leading business. A case of a market economy is the United States economy where the speculation and creation choices depend on organic market.

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Answer:

Missing word <em>"a. What must the six-month risk-free rate be in Japan"</em>

<em />

a. Spot rate = 1 US $ = 1.2377 Aus.dollar

Forward rate = 1 US $ = 1.2356 Aus.dollar

<u>1.2356</u> = <u>(1 + i Ad)</u>

1.2377     (1 + 0.05)

0.9983 * (1.05) = 1 + i.Ad

1.048215 = 1 + i.Ad

i.Ad = 1.048215 - 1

i.Ad = 0.048215

i.Ad = 4.82%

b. Spot rate = 1 US $ = 100.3300 Japan Yen

Forward rate = 1 US $ = 100.0500 Japan Yen

<u>100.0500</u> = <u>(1 + i Ad)</u>

100.3300     (1 + 0.05)

0.9972 * (1.05) = 1 + i.Ad

1.04706 = 1 + i.Ad

i.Ad = 1.04706 - 1

i.Ad = 0.04706

i.Ad = 4.71%

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a

Explanation:

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