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Vadim26 [7]
3 years ago
13

A German company wants to buy dollars to purchase U.S. bonds. In the open-economy macroeconomic model of the U.S., this transact

ion would be accounted for in:
a. the demand for currency in the foreign exchange market, and the supply of loanable funds.
b. the demand for currency in the foreign exchange market, and the demand for loanable funds.
c. the supply of currency in the foreign exchange market, and the supply of loanable funds.
d. the supply of currency in the foreign exchange market, and the demand for loanable funds.
Business
1 answer:
lilavasa [31]3 years ago
7 0

Answer:

The correct answer is d. the supply of currency in the foreign exchange market, and the demand for loanable funds.

Explanation:

In an open economy, we must add the external sector, which includes the Trade Balance or net exports and the Capital or Financial Balance.

Net exports, being part of aggregate expenditure, are incorporated into the SI. However, the inflows and outflows of payment commitments or international financial assets are recorded in the capital account, which gives rise to a new curve, the BB.

We know that in an open economy, monetary phenomena depend on the exchange system that the country follows: fixed or flexible exchange rate.

Under a fixed exchange rate, the variable that is permanently and permanently adjusted to an imbalance in the money market is international reserves.

Under the flexible exchange rate, the adjustment variable is the exchange rate.

With a fixed exchange rate, an increase in the money supply pressures upward on the level of domestic prices, which encourages imports and discourages exports, causing us to lose competitiveness against our business partners. This translates into a permanent and definitive loss of international reserves, which thus constitute the adjustment variable, that is, the monetary phenomenon.

You might be interested in
As a graduating senior, Chun Kumora of Manhattan, Kansas, is eager to enter the job market at an anticipated annual salary of $5
sammy [17]

Answer:

a. Chun Kumora's salary in ten years=$72,571.48

b. Chun Kumora's salary in twenty years=$97,530.01

c. Amount of raise Chun needs to receive next year=$1,620

d. Amount of raise Chun needs to receive the year after=$3,288.60

Explanation:

When choosing a career, there are various factors that need to be considered. One such factor is the salary. The expected salary should match with the salary average salary in the market. In our case, the annual salary is expected to be $54,000, but in order to estimate future salary requirements, the inflation rate has to be considered since the value of money reduces with time. Lets solve Chun Kumora's case as follows;

a. Salary in ten Years

The future value of the $54,000 salary in ten years while accounting for inflation can be expressed as;

F.V=P.V(1+r)^n

where;

F.V=future value

P.V=present value

r=inflation rate

n=number of years

In our case;

F.V=unknown, yet to be determined

P.V=$54,000

r=3%=3/100=0.03

n=10 years

replacing;

F.V=54,000(1+0.03)^10

F.V=54,000(1.03)^10

F.V=$72,571.48

Chun Kumora's salary in ten years=$72,571.48

b. Salary in twenty Years

The future value of the $54,000 salary in twenty years while accounting for inflation can be expressed as;

F.V=P.V(1+r)^n

where;

F.V=future value

P.V=present value

r=inflation rate

n=number of years

In our case;

F.V=unknown, yet to be determined

P.V=$54,000

r=3%=3/100=0.03

n=20 years

replacing;

F.V=54,000(1+0.03)^20

F.V=54,000(1.03)^20

F.V=$97,530.01

Chun Kumora's salary in twenty years=$97,530.01

c.

Amount of raise Chun needs to receive next year;

In our case;

F.V=unknown, yet to be determined

P.V=$54,000

r=3%=3/100=0.03

n=1 year

replacing;

F.V=54,000(1+0.03)^1

F.V=54,000(1.03)^1

F.V=$55,620

Raise=Amount next year-current amount

where;

Amount next year=$55,620

current amount=$54,000

replacing;

Raise=56,620-54,000=$1,620

d.

Amount of raise Chun needs to receive the year after;

In our case;

F.V=unknown, yet to be determined

P.V=$54,000

r=3%=3/100=0.03

n=2 year

replacing;

F.V=54,000(1+0.03)^2

F.V=54,000(1.03)^2

F.V=$57,288.60

Raise=Amount next year-current amount

where;

Amount next year=$57,288.60

current amount=$54,000

replacing;

Raise=$57,288.60-54,000=$3,288.60

7 0
3 years ago
What is the unit cost per tire when 4,000 tires are produced?
Papessa [141]

Answer: $76

Explanation:

If Blue Wagon sells everything it produces, this means that the capacity of the factory is underutilised and so more goods can be produced.

The fixed cost for producing 3,000 tires will therefore be the fixed costs for producing 4,000 tires.

= 20 * 3,000

= $60,000

Total cost when 4,000 tires are produced is;

= Variable costs + fixed costs

= (38 * 4,000) + ( 14 * 4,000) + ( 9 * 4,000) + 60,000

= 152,000 + 56,000 + 36,000 + 60,000

= $304,000

Cost per tire;

= 304,000/4,000

= $76

7 0
4 years ago
The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Hasbro, Inc., a leadi
vichka [17]

Answer:

Hasbro, Inc.

Balance Sheet

Assets

Current Assets:

Cash and cash equivalents                     $893  

Accounts receivable                      1,111

Allowance for doubtful accounts   (16)  1,095

Inventories                                                340

Prepaid expenses and

 other current assets                              392

Total current assets                           $2,720

Property, Plant, and Equipment (net):

Buildings and improvements              $ 234

Land and improvements                            7

Machinery, equipment, and software   504

Other noncurrent assets                       658  

Accumulated depreciation                   (509)

Property, Plant, and Equipment (net) $894

Other Assets:

Goodwill                                             $ 593

Other intangibles               1,123

Accumulated amortization

(other intangibles)              798          325

Other assets                                      $918

Total assets                                   $4,532

Explanation:

a) Data and Calculations:

Current Assets:

Cash and cash equivalents                     $893  

Accounts receivable                      1,111

Allowance for doubtful accounts   (16)  1,095

Inventories                                                340

Prepaid expenses and

 other current assets                              392

Total current assets                           $2,720

Property, Plant, and Equipment (net):

Buildings and improvements              $ 234

Land and improvements                            7

Machinery, equipment, and software   504

Other noncurrent assets                       658  

Accumulated depreciation                   (509)

Property, Plant, and Equipment (net) $894

Other Assets:

Goodwill                                             $ 593

Other intangibles               1,123

Accumulated amortization

(other intangibles)              798          325

Other assets                                      $918

8 0
3 years ago
Mollie has $550 in a savings account that earns 3% simple interest each year. If she does not deposit or withdraw from her accou
Zepler [3.9K]

As per the given simple interest, the amount in the account after 10 years is $715.

How to calculate Simple interest?

The general formula to calculate the simple interest is written as,

A = P(1 + rt)

Where

A refers Total Accrued Amount (principal + interest)

P refers Principal Amount

r refers Rate of Interest per year in decimal; r = R/100

t refers Time Period involved in months or years

Mollie has $550 in a savings account that earns 3% simple interest each year.

Here we need to find the amount in her account after 10 year.

According to the given question, we know that

Principal amount =$550

Interest rate = 3%

Time period = 10 years

Then the simple interest is calculated as,

First, converting R percent to r a decimal

r = R/100 = 3%/100 = 0.03 per year.

Solving our equation:

A = 550(1 + (0.03 × 10)) = 715

A = $715.00

Therefore, the total amount accrued, principal plus interest, from simple interest on a principal of $550.00 at a rate of 3% per year for 10 years is $715.00.

To know more about Simple interest here.

brainly.com/question/14399880

#SPJ4

3 0
1 year ago
The inaccuracy of the grapevine has more to do with the message output than with the input. a. True b. False
Dennis_Churaev [7]

Answer:

The answer is b. False

Explanation:

6 0
3 years ago
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