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Inessa05 [86]
3 years ago
12

Suppose the spot and three-month forward rates for the yen are ¥102.21 and ¥101.18, respectively.a. Is the yen expected to get s

tronger or weaker?b. What would you estimate is the difference between the inflation rates of the United States and Japan? (A negative answer should be indicated by a minus sign.
Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16)
Business
1 answer:
tresset_1 [31]3 years ago
3 0

Answer:

a.

The yen is expected to get stronger in three-month time.

It is because it is taking up to ¥102.21 to exchange for $1 at spot, while in three-month time, it is expected that it will only take ¥101.18 to exchange for $1.

b.

Applying relative purchasing power parity, we have:

USD is expected to depreciate 3% against Japan Yen, calculated as: 102.21 / 101.18 - 1 = 3%.

Thus, inflation rates of the United States is estimated to be 3% higher than inflation rates of the Japan.

Explanation:

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Answer:

REVENUES

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Which of the following principles underlies the interaction of individual choices? a Marginal analysis is used for "how much" de
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d There are gains from trade.

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Basically, the interaction of individual choices underlies the fact that there are gains from trade.

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3 years ago
Paulina believed that the new hires in her department were lazy for failing to make use of the company's expert software system,
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<h3>What is fundamental attribution bias?</h3>

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Based on the giveing scenario Paulina is using fundamental attribution bias on the new employ by ignoring the reason why the new hire did not use the company's expert software system.

Therefore this is an example of fundamental attribution bias.

Learn more about fundamental attribution bias here:brainly.com/question/17109470

8 0
2 years ago
A car manufacturer ordered 20,000 window assemblies from a supplier. To make sure the assemblies were made to specifications, th
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3 years ago
Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-ru
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Answer:

$80,000

Explanation:

Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be

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