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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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Holding all else constant, an increase in preferences by Mexicans for U.S. goods will ______ the demand for dollars in the forei

Finger [1]

Answer:

D. Increase; increase

Explanation:

Exchange rate is defined as the amount of one currency that can be exchanged for another currency at a particular time.

Demand and supply affects exchange rates of currencies.

Currencies that are in more demand tend to have higher exchange rates, while those with low demand will have low exchange rate.

In this instance an increase in preference for US goods will cause an increased demand for dollars. The dollar becomes stronger against the Peso.

It will take more pesos to purchase the dollar, so equillibrum exchange rate of peso to dollar will increase.

4 0

3 years ago

Siobhan is interested in creating a fashion line from banana husks. She is attempting to explain to her bosses how this is an en

Anettt [7]

Answer:

The correct answer is C. Bananas are already grown for consumption so no extra energy or resources will be used to create the husks.

Explanation:

Banana husks are residues that arise from the consumption of bananas by people, with which in principle they do not have a specific use, and are generated constantly given the high consumption rates of these foods.

Therefore, if the husks were to be used for the creation of changes of clothes, that is, using waste as raw material, this would be an environmentally friendly option because new resources would not be used for their elaboration, but rather they would be recycled. waste from other types of consumption.

7 0

3 years ago

. What is a great system to manage money and prevent taking too much from one category? Please describe the

Allushta [10]

I'm pretty sure the answer would be a budget? A good budget is a way you can keep track of your money. Like what you are spending it on in different categories (like bills, entertainment, food, etc) and how much money is being spent in each.

4 0

3 years ago

The Copy Department in the College of Business at State University provides photocopying service for both the Marketing and Econ

fiasKO [112]

Answer:

The correct answer is $170,000.

Explanation:

According to the scenario, computation of the given data are as follows:

We can calculate the cost allocated to Marketing by using following formula:

Total cost allocated = Fixed cost + Variable cost

Where, Fixed cost = (3,600,000 ÷ 5,400,000) × $120,000

= $80,000

And , Variable cost = $0.025 × 3,600,000 = $90,000

By putting the value, we get

Total cost allocated = $80,000 + $90,000

= $170,000

7 0

3 years ago

Assuming a customer claim will be granted, what type of response will allow the company to build a better relationship with the

densk [106]

Answer: direct

Explanation:

Assuming a customer claim will be granted, a direct response will allow the company to build a better relationship with the customer.

Direct response marketing is a form of sales technique that is utilized in order to give a reponse on-the-spot. This usually allows prospective customer take instant actions based on the offer by the advertiser. This response sees measurable results instantly.

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3 years ago