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3 years ago

n an open economy, why is the supply curve for dollars in the foreign-currency exchange market vertical?

Business

1 answer:

Zarrin [17]3 years ago

4 0

Answer:

In an open economy, the supply curve for dollars in the foreing-currency exhange market is vertical, because the supply does not depend on the exchange currency rate.

The supply of dollars in an open economy depends on the interest rate, which is determined by the difference between imports and exports (which is the same as the difference between purchases and sales of foreign capital).

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What term refers to the knowledge, education, training, skills, and expertise of a firm's workers?

makkiz [27]

Human capital is the term that refers to the knowledge, education, training, skills, and expertise of a firm's workers.
Gary Becker, an economist from the University of Chicago has popularized this term. The human capital includes assets of individuals that can be used to create economic value for the individuals, their employers, or their community:

7 0

3 years ago

A city government is considering two types of town-dump sanitary systems. Design A requires an initial outlay of $405 comma 00

SIZIF [17.4K]

Answer:

Desing A is a better deal as the equivalent annual cost is lower than desing B

Anywa, bot desing cost are above the city collections thus, it cannot afford the sanitary systems unless it raises taxes

Explanation:

Desing A

F0 405,000

operating and maintenance cost 51,000 for 14 years

Present value of the operating and maintenance cost:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C = $ 51,000.00

time = 14 years

rate = 0.07

$51000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\$

PV $446,018.8673

net worth: $ 851,081.87

equivalent annual cost:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 851,082

time 14

rate 0.07

$851081.87 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\$

C $ 97,316.904

Desing B

F0 251,000

operating and maintenance cost 89,000 for 14 years

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 89,000.00

time 14

rate 0.07

$89000 \times \frac{1-(1+0.07)^{-14} }{0.07} = PV\\$

PV $778,346.6507

net worth: $ 1,029,346.65

equivalent annual cost:

$1029346.65 \div \frac{1-(1+0.07)^{-14} }{0.07} = C\\$

C $ 117,700.580

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3 years ago

What is the purpose of a greenfield investment? to acquire an existing firm in a foreign country. to merge with an existing firm

Stels [109]

According to the Bureau of Economic Analysis (BEA), a greenfield investment is a project “where foreign investors establish a new business or expand an existing business on U.S. soil.”

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3 years ago

Failure by a promissory notes maker to pay the amount due at maturity is known as_________.

Andreas93 [3]

Failure by a promissory notes maker to pay the amount due at maturity is known as Dishonoring a note.

A dishonored note is a that promissory note which has not been paid by a debtor in a given reasonable amount of time. It causes the creditor to write off the recorded revenue as a bad debt.

With the help of promissory note, a buyer can make a short-term commitment to pay any supplier for merchandise within the stated time period and also at a certain interest rate.

In order to properly record a dishonored note in the financial journal of the organization one must first decide whether he is expecting to collect payment eventually or not.

A bill is always considered as dishonored either by non-acceptance or by non-payment of the bill.

To know more about dishonored note here:

brainly.com/question/9220878

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2 years ago

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi

frozen [14]

Answer:

Cost of retained earnings = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36

growth rate = 9 percent

solution

we get here Cost of retained earnings (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g ................1

here P is price and g is growth rate

put here value and we get

Cost of retained earnings = (1.80 ÷ 36 ) + 0.08

Cost of retained earnings = 0.13

4 0

3 years ago