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Ivanshal [37]
2 years ago
14

There is a flexible exchange rate system and only two countries in the world, the United States and Mexico. If the inflation rat

e in the United States rises relative to the inflation rate in Mexico, it follows that
a. the dollar will depreciate and the peso will appreciate.b. the peso will depreciate and the dollar will appreciate.c. both the peso and the dollar are likely to appreciate.d. both the peso and the dollar are likely to depreciate.
Business
1 answer:
xz_007 [3.2K]2 years ago
5 0

Answer: The correct answer is "a. the dollar will depreciate and the peso will appreciate.".

Explanation:  If the inflation rate in the United States rises relative to the inflation rate in Mexico, it follows that the dollar will depreciate and the peso will appreciate.

As inflation in the United States is higher, the dollar is affected by a loss of purchasing power, therefore it depreciates with respect to the Mexican peso.

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The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus
Pavel [41]

Answer:

The correct answer is C: Bonus= $24000

Explanation:

The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus of 20 percent of income after deduction of the salary allowance.

The formula to calculate the bonus is:

Bonus=0,20*(Income-salary)

If income is $150000

Bonus= 0,20*(150000-30000)=$24000

8 0
2 years ago
If a donut shop sells a dozen donuts for $6.00, what would the cost of 9 donuts be at the same rate?
larisa86 [58]
To solve this question, first we need to find out the price of a single donut.

12 donuts = $ 6.00
1 donuts = $6.00 / 12

1 donuts = $ 0.50

After that, we just need to multiply the price for a single donut with the required amount (9), which will be:

9 x $ 0.50 = $ 4.50 . . . . for 9 donuts



3 0
3 years ago
If markets are efficient, what should be the correlation coefficient between stock returns for two nonoverlapping time periods?
S_A_V [24]

Answer: Zero

Explanation:

The Correlation Coefficient measures the relationship between 2 variables under study and ranges from -1 to +1 which -1 meaning that the two are perfectly negatively correlated and +1 meaning they are perfectly positively correlation. A Correlation Coefficient of 0 means that there is no relationship.

An efficient market is one where all information is available to every market participant. This means that one cannot use information from one period to make abnormal profits in another period because all information is available. The Correlation Coefficient will therefore show 0 because information from the previous period is not being used in another period meaning there is no relationship between stock returns.

7 0
3 years ago
The writing format includes all but the following _____.
BlackZzzverrR [31]
I think that the answers is c
5 0
2 years ago
Read 2 more answers
Consider the economies of Macmillana and Bloedelo, which are identical except that the multiplier in Macmillana is smaller than
GrogVix [38]

Answer:

Macmillana's GDP is less sensitive economic fluctuations than Bloedelo's GDP. Two reasons account for this:

1) The keynesian multiplier is smaller.

The keynesian multiplier tells us about the sensitivity of GDP to increases in domestic expenditure (consumption, investment or government purchases). If the keynesian multiplier is small, then, GDP will be less sensitive to fluctuations in aggregate expenditure.

2) Macmillana's economy has implemented automatic stabilizers, while Bloedelo's economy has not.

Automatic Stabilizers are government policies meant to reduce fluctuations in GDP. The two most common automatic stabilizers are: income taxes and unemployment benefits.

Automatic Stabilizers reduce the kenyensian multiplier, dampening Macmillana's GDP sensitivity to fluctuations even more.

3 0
3 years ago
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