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Vladimir79 [104]
3 years ago
7

Starting from a trade balance, if the world interest rate falls, then, holding other factors constant, in a small open economy t

he amount of domestic investment will _____ and net exports will _____.
Business
1 answer:
Sati [7]3 years ago
5 0

Answer:

domestic investment will <u>increase</u> and net exports will <u>decrease</u> .

Explanation:

Previously in trade balance, If world Interest falls : It becomes comparatively  lesser than relatively higher domestic interest rate. And makes domestic country a lucrative investment destination. This relatively higher domestic will lead to capital inflows & increase domestic investment.

When our currency is demanded more for capital inflows, its excess demand in foreign exchange market appreciates the currency & reduces exchange rate. At lower exchange rate & appreciated currency value, our exports become expensive & imports cheaper. This reduces exports & increases exports , hence reduces Net Exports.

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The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate
rusak2 [61]

Answer:

3%

Explanation:

real interest rate ≈ nomial interest rate - inflation

ratereal interest rate ≈ 6 - 3 ≈ 3%

Please mark as brainliest if you find this useful, I need it to rank up

5 0
2 years ago
It is important to use real rather than nominal gdp figures when making comparisons of output across time periods because the re
melamori03 [73]

Answer: TRUE

Explanation: Gross Domestic Product ( GDP) can be described as the market value of all goods and services produced in a country within a particular time period which is usually a year.

The equation for finding GDP is given as -

GDP = Consumption + Investment + Government Spending + ( Exports - Imports)

Nominal GDP can be described as the market value of all goods and services produced in a country within a particular time period using current market prices.

Real GDP can be described as the market value of all goods and services produced in a country within a particular time period using base year prices. Using base year prices to calculate real GDP adjusts for inflation.

4 0
3 years ago
The u.s. department of commerce developed a(n) ________ framework in order to enable u.s. businesses to legally use personal dat
AlexFokin [52]
<span>The correct option is,"Safe harbor".
The U.S. Department of Commerce developed a safe harbor framework in order to enable U.S. businesses to legally use personal data from EU countries.
</span>Safe Harbor refers to an agreement that is between the United States Department of Commerce and the European Union that directed in such a way that U.S. organizations could export and handle the individual information and personal data of European nationals.
3 0
3 years ago
. At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 o
irinina [24]

Answer:

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4 0
3 years ago
In a _______ organization lower-level managers are empowered to make decisions which can ________ motivation and job satisfactio
cupoosta [38]

Answer:

The correct answer is B

Explanation:

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So, in a organization or company which is decentralized where lower level managers are empowered for taking a decision leads to increase in the motivation as well as the job satisfaction of the employees.

3 0
3 years ago
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