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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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Explanation:

Trade offs are something in which there are two things and we choose one of them according to our own preference or need. This is and should be our personal decision, but when Corporations and Governments decide on what to choose between two things, there would might be a negative impact on someone's life. He might feel controlled by the corporations and governments. For example, if corporations of CNG decides with the government that it is better for consumers to use CNG than Petrol in their cars, and lowers taxes on CNG and encourage consumers to shift towards CNG, then this trade off will have an impact of being controlled by the big giants. The choice should be of consumer's. The consumer should be the one who will trade off between things who are preferable for him.

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2 years ago
Although humans made stone tools for 200,000 years the most sophisticated form and last complete stone tool kit is the ________,
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Although humans made stone tools for 200,000 years the most sophisticated form and last complete stone tool kit is the <u>crude stone tools </u>represented by: the awl, atlatl and bow & arrow.

<h3 /><h3>What were crude stone tool?</h3>

Any tool that is partially or totally fashioned out of stone is considered a stone tool in the broadest definition. Even if there are still societies and cultures that rely on stone tools, most of them are related to extinct prehistoric (especially Stone Age) cultures.

Archaeologists frequently research these prehistoric societies, and the examination of stone tools is known as lithic analysis. To deepen our understanding of the cultural ramifications of stone tool use and production, ethnoarchaeology has been a useful research field.

Arrowheads, spearheads, hand axes, and querns are just a few examples of the numerous tools made from stone throughout history. Stone can be ground into tools or it can be shaped by a flintknapper into knapped implements.

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1 year ago
Regarding the overall effect of negative interest rates on the economy, economists
vova2212 [387]

Answer:

The effect of negative interest rates on the economy is reflected in option D:  negative interest rates simply cannot happen in reality.  Answer D is the correct response.

Explanation:

Answer C is partially correct.  In reality, experiments are running on economies as today:  Greece economy.  After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back.  This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy:  customers will go for profit, not cost.  

The effect of this model is negative on the economy since it will not provide enough resources for stimulation.  Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.

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2 years ago
What is a bank savings account?
solmaris [256]
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3 years ago
Alex's country was once communist, but now allows limited private ownership of companies, and lets market forces determine produ
ioda

Alex's country was once communist, but now allows limited private ownership of companies, and lets market forces determine production and pricing decision is the kind of 'Market Socialist' economy.

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In real life, Market socialism components have been present in a number of different economies. A version of market-based socialism, based on socially owned cooperatives, workers' self-management, and market allocation of capital, is usually regarded as having existed in the former Socialist Federal Republic of Yugoslavia.

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