If purchasing power parity holds, when a country's central bank decreases the money supply, its <u>If purchasing power parity holds, when a country's central bank decreases the money supply, its price level (rises/falls) and its currency (appreciates/depreciates) relative to other currencies in the world. </u>
A theory of exchange rate determination and a means to compare average prices of goods and services between nations is purchasing power parity (PPP).
According to the hypothesis, fluctuations in the spot exchange rate are caused by importers' and exporters' actions, which are prompted by variations in prices across nations.
Alternatively, PPP contends that changes to a nation's current account may have an impact on the value of the currency's exchange rate on the foreign exchange (Forex) market.
In contrast, the interest rate parity theory postulates that fluctuations in the exchange rate are caused by investor actions (whose transactions are reported on the capital account).
The "law of one price" as it pertains to the overall economy is the foundation of PPP theory.
Hence, option A and D is correct.
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Answer:
Here's my Macroeconomic model.
Explanation:
Thus, the five-sector model includes (1) households, (2) firms, (3) government, (4) the rest of the world, and (5) the financial sector. The financial sector includes banks and non-bank intermediaries that engage in borrowing (savings from households) and lending (investments in firms).
Answer:
The correct option is A, market segmentation
Explanation:
Market segmentation is the process of dividing customer base into distinct groups based on age,income,level of education,personality,perception and so on.
The purpose of segmenting the markets is for the organization to satisfy the needs of these different groups based on their unique characteristics and to able to sell to them goods that best match their status.
The scenario here is that Gap Inc,has successfully been able to discover the right set of people that its casuals best match.
Exact interest method is using 365 days instead of 360.
We are going to use the formula: I = Prt, we will derived
the formula of rate.
r = I /Pt would be our formula, plugging in our amounts.
r = 93.37 / 2000 / (284/365)
= 93.37 / 2000 (0.7781)
= 93.37 / 1556.1643
= 0.06 or 6% when converted to percent.
To check:
I = Prt
= 2000 x 0.06 x 284/365
= 120 x 0.7781
= 93.37
Answer:
B) False
Explanation:
In a command economy, the government makes the fundamental economic choices such as what to produce and how to produce output.
The government also owns means of production.
I hope my answer helps you
