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Gemiola [76]
4 years ago
7

DEP Inc. is interested in forecasting the trends in the real exchange rate of Vietnamese currency, dong, because its supply chai

n depends heavily on Vietnamese producers. The company's management assesses the components of aggregate demand in Vietnam and determines that in the past, total private and public expenditure on nontradables has been growing at the same rate as the supply of nontradables in Vietnam, as has been the case in all other countries. However, DEP's management notices that the situation in Vietnam has started to change and concludes that in the foreseeable future, the demand for nontradables in Vietnam will be growing slower than the supply of nontradables, while the situation in the rest of the world will not change. Assume that other factors remain unchanged. Based on this assessment, DEP Inc. can conclude that over the next several years, the dong's real exchange rate will be
a. depreciating vis-à-vis all other currencies.
b. appreciating vis-à-vis all other currencies.
c. remaining unchanged vis-à-vis all other currencies.
d. depreciating vis-à-vis some currencies, while appreciating vis-à-vis some others.
Business
1 answer:
Advocard [28]4 years ago
8 0

Answer:

b. appreciating vis-à-vis all other currencies.

Explanation:

Since the demand for non tradables will be slow then the supply; its price in Vietnam will decline a decline in domestic prices relative to international prices will raise exports and hence improve the external balance of Vietnamese economy appreciating its exchange rate.

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4 years ago
Let’s use the model of the supply and demand for bank reserves to explain how the Federal Reserve can change aggregate demand in
nikdorinn [45]

Answer:

A) To cut the interest rate from 2% to 1.5%, the Federal Reserve needs to increase the money supply. The Open Market Committee will have to sell US Treasury security bonds in order to increase the money supply. This in turn will increase commercial bank's reserves, who in turn, will lower their interest rates in other to get rid of excess reserves.

B) Banks will lend more money because they now have excess reserves. It will increase the nation's money supply because banks create money when they make loans.

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7 0
3 years ago
Troy, who is 18, offers to sell Jenna, who is also 18, his car for $5,000. Jenna accepts Troy's offer, but only agrees to pay $4
Ratling [72]

Answer:

Acceptance

Explanation:

For a contract there are some certain conditions to be fulfilled, to call it valid. This includes the basic two things:

Offer and acceptance.

Offer refers to the option provided by a party in the contract and that there is acceptance from opposite party to accept the offer, and when it is accepted as the offer itself, then the contract is valid.

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5 0
4 years ago
On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $672,000 conside
bogdanovich [222]

Answer:

Question a:

The non-controlling interest of Rockne´s 2018 net income is $111,000.- calculated by taking 30% of Rockne´s net income of $370,000.-  

Question B:

There are 3 entries required to eliminate te sale of goods form rochne to doone.  

The first entry eliminates the sales recorded by rockne against te inventory or cost of goods sold by recorded by doone.  To consider, the 60% of the purchases went trhough cost of good sol d and 40% of the purchases remain in inventory until the following year.  Here is the engru:

Debit/sales/$530

Credit/COGS/ ($318) 60%

Credit inventory ($212) 40%

The next entry has to do with the amount of inventory that remained from the last intercompany transaction.  This is caclulated usin 40% of 2017 sales, which were $430.   So:

Debit inventory $172

Credit Cogs  ($172)

The last part is to eliminate the recievable on the book of rockne when they made te sale

Debit Payable $530

Credit receivable ($530)

6 0
3 years ago
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