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
Lena [83]
3 years ago
6

If purchasing power parity holds, then if the price of a basket of goods in the U.S. rose from $1.000 to $1,200 and the price of

the same basket in Poland rose from 6,400 Polish zloty to 8,000 zloty, then a. the nominal exchange rate would be unchanged and the real exchange rate would appreciate. b. the U.S. dollar would appreciate and the real exchange rate would stay the same. c. the nominal exchange rate would be unchanged and the real exchange rate would depreciate. d. the U.S. dollar would depreciate and the real exchange rate would be unchanged.
Business
1 answer:
jonny [76]3 years ago
6 0

Answer:

b) The US dollar would appreciate and the real exchange rate would stay the same.

Explanation:

Increase in Inflation in US: 1,200 / 1,000 - 1 * 100 = 20%

Increase in Inflation in Poland: 8,000 / 6,400 - 1 * 100 = 25%

Law of one price states that identical goods should be exchanged at equal prices in different countries valued in local currencies. This law is known as purchasing power parity theory.

According to the theory, increase (decrease) in prices of goods or a basket of goods in one country will result in depreciation (appreciation) of its currency so exchange rate-adjusted prices are constant across countries.

In our question, the price of basked of goods has increased by 25% in Poland as compared to 20% in U.S. thus implying depreciation of Polish zloty against US dollar or appreciation of US against Policy zloty.

You might be interested in
The amount of uncollectible accounts at the end of the year is estimated to be $37,500, using the aging of accounts receivable m
ANTONII [103]

Answer:

$37,500

Explanation:

Given that

Uncollectible amount os $37,500

And, the credit balance of the Allowance of Doubtful Accounts  is $13,000

Based on the above information

The adjusted balance of the allowance for doubtful accounts is equivalent to the uncollectible amount i.e. $37,500

The same is to be considered

hence, the answer is $37,500

5 0
3 years ago
Information concerning Department A of Synergy Company for the month of June is as follows: Materials Units Costs Work in proces
vfiekz [6]

Answer:

0.78

Explanation:

beginning 22,000 with a cost of 15,675

started and completed: completed - beginning

                                         99,000 - 22,000  =    77,000

equivalent units ending WIP 16,500 x100% =    16,500

equivalent units for materials 93,500

equivalent cost of materials: 73,260 / 93,500 = 0,78

for the equivalent cost we will calcualte only using the cost added during the period.

8 0
2 years ago
A pattern of relationships and accountability between a superior and his or her subordinates is established by the process of:
crimeas [40]
Delegation of Authority

The delegation of authority is having upper level management funnel tasks and information through their chain. Delegation is assigning someone below them (usually) a task to complete. 

Often the delegation of authority looks like this:
Top level management
Middle level employee
Low level employee
Operating level employee
7 0
3 years ago
Which of the following is the definition of baseline?
Rasek [7]

Answer:  Option A

Explanation: In simple words, baseline can be define as the level of some activity that can be considered as the average or normal performance level and be set as a criteria for future purposes. It is seen as an expected performance that will occur every time activity will be performed.

A baseline is a fixed reference point which is not changed occasionally. A base line works as a core factor in planning process as all the objectives will be set according to the baseline determined.

Hence the correct option is A.

8 0
3 years ago
Which of the following charitable contributions is not tax deductible?a. Cash donated to a qualified church.b. Clothing donated
Lana71 [14]

Answer:

e. All of the above are tax deductible.

Explanation:

As per IRS time or service donated is not tax deductible.

4 0
3 years ago
Other questions:
  • Gordon Corporation produces 1,000 units of a part per year which are used in the assembly of one of its products. The unit cost
    9·1 answer
  • Goals of the Firm. Fill in the blanks in the following passage by choosing the most appropriate term from the following list (so
    9·1 answer
  • The difference between the current sales revenue and the sales at the break-even point is called the:a. price factor b. operatin
    14·1 answer
  • On March 1, Tammy, a student, received a telephone call from Waverly LLC offering her a job for one year beginning on June 15, a
    5·1 answer
  • Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 345,000 Beginning m
    6·1 answer
  • Identify 3 channels through which positive and neutral messages travel in the digital era
    10·1 answer
  • Differential analysis may be used for the common decisions of leasing or selling equipment and manufacturing or purchasing a nee
    12·1 answer
  • A profitable company making earthmoving equipment is considering an investment of $150,000 on equipment that will have a 5 year
    5·1 answer
  • A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 9.40%. (Do not round int
    6·1 answer
  • When power or influence within an organization flow to individuals or leaders who have the ability to help an organization or gr
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!