Answer:
Hurt
Explanation:
Inflation is a persistent rise in general price level.
Nominal interest = inflation rate + real interest rate
If inflation is 1.7% and he is paid 1% interest. The inflation level is higher than interest paid. So, Jake is hurt because he is not compensated for the inflation level
Answer:
Would not exercise its currency option
Explanation:
Currency options are one of the most common ways for corporations , individuals or financial institutions to hedge against adverse movements in exchange rates.
A currency option is a contract that gives the buyer the right , but not the obligation, to buy or sell a certain currency at a specified exchange rate on or before a specified date.
Purchasing power parity (PPP) represents the universality of exchange rate systems.
Purchasing power parity is a measure of prices in different countries that uses the price of a particular commodity to compare the absolute purchasing power of each country's currency with the standard of living of a given population.
A simple example is a liter of Coca-Cola. At €2.3 in France and $2.00 in the US, Coca-Cola's PPP between France and the US is 2.3/2.00 or 1.15.
Purchasing Power Parity (PPP) is a popular indicator used by macroeconomic analysts to compare currencies of different countries through a "shopping basket" approach. Purchasing power parity (PPP) allows economists to compare the economic productivity and living standards of countries.
Learn more about PPP brainly.com/question/2286004
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I would think 78,956 because you have to think about what you would put in there like water heaters and septic and water pipes you really have to think about for electricity all kinds of stuff would drive the bill more, and more