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hram777 [196]
3 years ago
7

the United States, a three-pound can of coffee costs about $5. If the exchange rate is 0.8 euros per dollar and a three-pound ca

n of coffee in Belgium costs 7 euros. What is the real exchange rate
Business
1 answer:
Luda [366]3 years ago
3 0

Answer:

=4/7 cans of Belgium coffee for one can of US coffee

Explanation:

Cost of 1 can of coffee in US = $5

Cost of similar can of coffee in Belgium = EURO 7

Real Exchange Rate (Euro/$) =

Nominal Exchange rate × \frac{Price\ in\ domestic\ market}{Price\ in\ foreign\ market}

= 0.8 × 5/7

=4/7 cans of Belgium coffee per can of US coffee

Nominal exchange rate refers to the exchange rate between two countries which is not adjusted for inflation.

Nominal exchange rate when adjusted for inflation is known as real exchange rate.

Real rate = Nominal rate - Inflation rate

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Answer:

yes

Explanation:

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3 years ago
Several years ago a city established a sinking fund to retire an issue of general obligation bonds. This year the city made a 55
Amanda [17]

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Explanation:

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4 0
3 years ago
U.S. imports are​ _____ produced in​ _____ and sold in​ _____. A. goods and​ services; any other​ country; the United States B.
maks197457 [2]

Answer:

The correct answer is option A.

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While the goods and services that are produced in the US and sold in some other country are exports for the US and imports for the purchasing country.

6 0
3 years ago
Which one is the biggest part of your budget fixed or variable cost
VLD [36.1K]
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3 0
3 years ago
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Tasya [4]

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There are several pre-offer takeover defense mechanisms. One of them is the golden parachute.

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There are also post offer takeover defense. They include:

A. The crown jewel - in a crown jewel the firm sells off a subsidiary or an asset to a third party in an effort to mitigate the hostile take over.

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5 0
3 years ago
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