A senator renounces his past support for protectionism: "The U.S. trade deficit must be reduced, but import quotas only annoy ou
r trading partners. If we subsidize U.S. exports instead, we can reduce the deficit by increasing our competitiveness."
Show the effect of an export subsidy on the market for foreign exchange.
The value of dollars in the market for foreign-currency exchange.....falls or rise.... as a result of this export subsidy.
True or False: The export subsidy reduces the trade deficit.
Show the effect of an export subsidy on the market for foreign exchange.
The value of dollars in the market for foreign-currency exchange.....falls or rise.... as a result of this export subsidy.
True or False: The export subsidy reduces the trade deficit.
1 answer:
You might be interested in
Answer: $611.57 or $612 rounded to nearest dollar.
Explanation:
She would have to make a constant payment per quarter which makes it an annuity.
The $10,000 is the present value of the annuity.
The quarters remaining are = 5 years * 4 = 20 quarters
Quarterly interest = 8%/4 = 2%
10,000 = Annuity * Present Value of Annuity factor, 20 periods, 2%
10,000 = Annuity * 16.3514
Annuity = 10,000/16.3514
= $611.57
