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Arisa [49]
3 years ago
10

Suppose China exports TVs and uses the yuan as its currency, whereas Russia exports vodka and uses the ruble. China has a stable

money supply and slow, steady technological progress in TV production, while Russia has very rapid growth in the money supply and no technological progress in vodka production. Based on this information, what would you predict for the real exchange rate (measured as bottles of vodka per TV) and the nominal exchange rate (measured as rubles per yuan)
Business
1 answer:
Damm [24]3 years ago
8 0

Answer:

The real exchange rate would result in a growth of the relative price of Chinese TVs over the price of Russian Vodka.

This is because Chinese TVs are becoming more technologically advanced, increasing both their nominal and real value, while Russian Vodka is being produced en masse, but without technological progress, decreasing both its nominal and real value.

The nominal exchange rate would result in the ruble depreciating strongly against the Yuan.

The quick growth of money supply in Russia means inflation, and this added to the loss of value of the Vodka exports, results in the decrease of nominal value for the ruble against the Yuan, which has a moderate growth in money supply (meaning moderate inflation), and benefits from the exports of a good that is appreciating (the Chinese TVs).

Explanation:

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Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to kee
GenaCL600 [577]

Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to keep every cog and wheel is the first precaution of intelligent tinkering..." also known as the Land Ethic

B. Aldo Leopold

Explanation:

  • Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to keep every cog and wheel is the first precaution of intelligent tinkering..." also known as the Land Ethic
  • B. Aldo Leopold
  • Aldo Leopold is the only person who has said this line. It is also related to the facts given that Aldo was considered by many  as the of wildlife management.
  • he also had long arguement about that wilderness was vitally important to protect both for and from humans.

8 0
3 years ago
Read 2 more answers
Which of the following functions of money enables society to gain the benefits of geographic and labor specialization? store of
grandymaker [24]

Answer:

The correct answer is: medium of exchange.

Explanation:

The medium of exchange function of money that helps the society in gaining the benefits of geographic and labor specialization.  

The medium of exchange function means that money is an asset that is widely accepted as a medium of exchange in the transactions involving the exchange of goods and services.  

The medium of exchange function of money eliminates the need for double coincidence of wants. Thus helps in labor and geographic specialization.

4 0
3 years ago
Describe some of the mistakes americans often make when it comes to money
goldenfox [79]
Some of the mistakes that we made are:
- Getting loans unthoughtully
- Buying things that we don't actually need before we managed to fulfill all basic needs for our living.
- Too late to invest. In order to financially secure, it's best to set asie an investment and let the profit compound.
8 0
3 years ago
Read 2 more answers
Amy has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an accoun
lara31 [8.8K]

Answer:

<em>a) Trade can make everyone better off </em>

Explanation:

In business, it is common to see trades. If the startup agrees to maintain an accounting firm's website in EXCHANGE for the tax returns, that is called trading since you are giving one thing for another.

Hope this helps! :)

3 0
3 years ago
A firm is reviewing an investment opportunity that requires an initial cash outlay of $336,875 and promises to return the follow
Fofino [41]

Answer:

The NPV of this investment is $64,581.75

Explanation:

Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:

NPV=-Investment+\frac{CF1}{(1+r)^{1} }+\frac{CF2}{(1+r)^{2}} +\frac{CF3}{(1+r)^{3}} +\frac{CF4}{(1+r)^{4}} +\frac{CF5}{(1+r)^{5}}

Where

NPV = Net Present Value

CF = The cash flow stated in the problem by year

r= discount rate (in our case, 0.08 or 8%)

Now, let´s solve this.

NPV=-336,875+\frac{100,000}{(1+0.08)^{1} }+\frac{82,000}{(1+0.08)^{2}} +\frac{76,000}{(1+0.08)^{3}} +\frac{111,000}{(1+0.08)^{4}} +\frac{142,000}{(1+0.08)^{5}}

NPV=-336,875+ 92,592.59 + 70,301.78 + 60,331.25 + 81,588.31+96,642.81

NPV=64,581.75

So, the net present value of this project is $64,581.75

Best of luck.

7 0
3 years ago
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