1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sladkaya [172]
3 years ago
8

It has been abundantly demonstrated that nominal interest rates, exchange rates, and inflation are very tightly linked. In Italy

, during the 1970s and 1980s, the inflation rate of the Italian lira was very erratic, changing each year in a range of 7% to 20% per year. Predict the effect on Italy's nominal interest rates and its exchange rates with other nations during that period.
Business
1 answer:
nasty-shy [4]3 years ago
8 0

Answer:

Indeed, inflation is closely related to interest rates and exchange rates, since it is ultimately the loss of value of a currency.

Regarding nominal interest rates, the higher the inflation, the higher the interest rates. This is so because it seeks to cover the loss of value generated by inflation through the interest generated by investments, with the aim that they do not leave the country. Therefore, in the case of the Italian lira, if it had an inflationary rate of between 7% and 20%, interest rates would probably be around 10% and 25%.

At the same time, inflation also affects exchange rates, as this process breaks price parity and generates an imbalance between currencies. Thus, using US dollars, if a product is worth 100 lire and the exchange rate is 100 lire for one dollar; In the case of 20% inflation, the most logical thing would be for the exchange rate to move in the same direction: it would be 120 liras for 1 dollar.

You might be interested in
What is important to know about yourself when making a career choice?
yaroslaw [1]
It’s important to know your limits and your strengths.
The goal is to do your best in the job you have, so before making that important choice, it’s good to think about maybe your talents or hobbies that you have.
You could ask yourself questions such as:

Do I communicate well with people?

What am I best at?

Am I able to fulfill the tasks that are included in this career?

And I’m sure there are more questions, but it is a good thing to know yourself that way when you apply for a job, you know what you’re getting into.

I hope this helps!
~Brooke❤️
5 0
4 years ago
A company creates 40 units of a product using 30 hours of labor and 15 sheets of paper. Labor costs $10/ hour and paper costs $5
Scorpion4ik [409]

Answer:

0.038 units per $ of factor costs

Explanation:

Labor cost for 40 units  = 30 hours × $10/hour = $300

Cost of paper for 40 units = 15 sheets × $50/sheet = $750

Output = 40 units

Multi factor productivity is expressed as;

Multi factor productivity = Output/Total Factor cost

Multi factor productivity = 40 units/$1050 = 0.038 units per $ of factor cost

Multi factor productivity is a measure that depicts units produced for every $ of factor products used. In the above case 2 factors i.e labor and paper are used.

8 0
3 years ago
Which of the following statements, if any, represent a principal’s duty to an agent who works on a commission basis?
saul85 [17]

Answer:

a) The principal is required to maintain pertinent records and pay the agent according to the terms of their agreement.

Explanation:

The relationship between agent and principle is agreement based and differs from other agent-principle relationships.

Commission will be paid to agent as per their agreement.

4 0
3 years ago
Why is business plan necessary?​
Agata [3.3K]

Answer:

Business plan necessary because:

•It make you aware of your strength or weakness.

•It also creates an effective strategy for growth.

•It helps to determine your future financial needs.

•It also helps to gain a deep understanding of your market.

7 0
2 years ago
When Corinne asked why she didn't get the job, the manager replied, "I needed someone who understood basic accounting practices
OLga [1]

Answer:

The aspect of career readiness the manager feel Corinne was lacking was Knowledge

Explanation:

Career readiness is the preparation and process of acquiring skills, knowledge, talents that are required to start a career, maintain one's position in such career and grow.

The aspect of career readiness the manager feel Corinne was lacking was Knowledge because see made a statement that implied that Corinne lack basic understanding of accounting practice.    

Knowledge  is an aspect of career readiness that has to do with the theoretical or practical  understanding of a subject matter. It is the information, skills and facts gained through experience and education.

Other skills that are acquired in the process of career readiness are communication skills, human relation skills, critical thinking skills etc.

5 0
3 years ago
Other questions:
  • Hot and Cold Corp. makes disposable coffee and soft drink cups for use in fast-food restaurants, hospitals, convenience stores,
    9·1 answer
  • What is debt funding?
    11·1 answer
  • Patsy, a registered nurse, has decided to start a home healthcare service to assist with the medical, meal preparation, and ligh
    13·2 answers
  • Which of the following is considered a cause of inflation?
    15·1 answer
  • As an eighth grader, Marliss wins an art competition, and her prize is one thousand dollars. She wants to invest the money for h
    7·1 answer
  • Asking "Who would buy my product?" in a survey is an example of what?
    11·2 answers
  • MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% serv
    7·1 answer
  • The following data represent quantities of tea leaf pluckings (tender shoots from tea plants) from sixteen different plots of te
    10·1 answer
  • Green Valley Exporters USA has $100,000 of before tax foreign income. The host country has a corporate income tax rate of 25% an
    7·1 answer
  • A project with a cash inflow of $185 followed by a cash outflow of (-$250) one year later will have an irr of ___ percent.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!