In a typical balance of payments crisis part the interest parity curve shifts in. Capital exodus results from downward pressure on interest rates, whereas imports rise as income levels rise.
As a result, the exchange rate depreciates, moving the BP curve to the right. The I and Y combinations that result in balance of payments equilibrium are provided by the BP curve. A given domestic price level, a certain currency rate, and a specified net foreign debt are used to build the BP curve. When the capital account deficit equals the current account surplus, equilibrium has been reached. Interest rates between two countries must be equal for interest rate parity to persist in a fixed exchange rate regime.
To learn more about payments, click here.
brainly.com/question/15138283
#SPJ4
Answer: Economies of scale
Explanation:
Economies of scale occurs when there is a reduction in cost as a result of an increase in production. Economies of scale are the cost advantages which a business can exploit through the expansion of its scale of production. The aim of economies of scale is to lower the average costs of production.
When the car manufacturer diversifies his operation by producing pickup trucks and SUVs, there'll be a reduction in the average unit cost of output. This term refers to Economies of scale.
Answer:
The answer is Conglomeration
Explanation:
This is a term that describes the process by which a conglomerate is created, and a conglomerate is a corporation that owns a number of different businesses that are unrelated.
Another trait of a conglomerate is that every one of the conglomerate's subsidiaries operate independently of each other, but each subsidiary reports to the parent company.
<em>If the marketing managers at Peyton Bike's Inc. decide to sell each bike at a price lower than $2,000 per unit</em><em>, a shortage of bikes will be created.</em>
<h3>Why are bikes in short supply?</h3>
As a result, additional problems like plant shutdowns and disruptions as well as the unheard-of increase in bike orders during the peak of the coronavirus pandemic have added to the supply chain difficulties. The sector has never before experienced such a massive increase in demand as it has over the past two years.
learn more about<em> </em>shortage of bikes here <u>brainly.com/question/13000057</u>
#SPJ4
Answer:
$119,176.06
Explanation:
Calculation for How much would you need to invest in B today
First step is to calculate the Future value of annuity (FVA)
FVA =$2,500 * ({[1 + (.115 / 12)](5 × 12) - 1} / (.115 / 12))
FVA = $201,462.23
Since we have known the FVA Second Step will be to calculate the Present value (PV)
PV = $201,462.23 × e-1 × .105 × 5
PV= $119,176.06
Therefore the amount that you would need to invest in B today will be $119,176.06
