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viva [34]
3 years ago
7

Suppose that the United States and China trade exclusively with each other. What will happen to the value of the U.S. dollar, ce

teris paribus, if the price level in China rises faster than the price level in the United States
Business
1 answer:
grin007 [14]3 years ago
6 0

Answer:

If the price level in China is rising faster than the price level in the US, this means that the Chinese inflation rate is higher.

two different things will happen here:

1) higher inflation means that Chinese products will be more expensive which will increase the demand for American products. An increase in the demand for American products will appreciate the US dollar, but...

2) Inflation all by itself generally would not alter the exchange rate, but high inflation generally leads to high interest rates. Central banks usually increase interest rates to decrease inflation.

Higher interest rates will usually increase the demand of a currency which result in an appreciation of the local currency against foreign currencies. In this case, the Chinese yuan should appreciate against the US dollar.

Generally the appreciation of a currency due to high interest rates will offset the depreciation due to a negative trade balance.

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Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.
balandron [24]

Answer:

<u>a defense attorney instead</u>

<u>Explanation:</u>

From a financial standpoint, a <u>defense attorney</u> would more likely make more money than a<u> juvenile prosecutor</u> because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.

Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.

6 0
3 years ago
Jenny (35 years old) is considering making a one-time contribution to either a traditional 401(k) plan or to a Roth 401(k) plan.
Lisa [10]

Answer:

The statement which is true is as follow:

A. If Jenny's marginal tax rate in the year of contribution is higher than her marginal tax rate in the year of distribution, she will earn a higher after-tax rate of return on the traditional 401(k) plan than on the Roth 401(k) plan.

Explanation:

  • Traditional and Roth 401(k) are the retirement saving plans and have a difference that is important to understand by you.
  • In Traditional 401(k), contributions are made before tax that means your withdrawals are taxed Roth 401(k) contributions are made after tax that mean withdrawals are not taxed.
  • The option A is correct as Jenny's marginal tax rate in the year of contribution is higher than her marginal tax rate in the year of distribution but she will earn a higher after-tax rate of return on the traditional 401(k) plan than on the Roth 401(k) plan as it has been discussed in the above point that in traditional 401(k), our withdrawals are taxed but not in Roth 401(k).

4 0
3 years ago
Which depict a negative externality? (Select all that apply)
kompoz [17]

Answer:

The corrects answers for this would be A and C.

Explanation:

As you can see, for both a and c, those are the only two answers that have a negative outcome, hence the negative externality.

5 0
3 years ago
Waygate's residential internet modem works well but is sensitive to power-line fluctuations. On average, this product hangs up a
Setler [38]

Answer:

a. In excess of .95

Explanation:

Waygate's residential internet modem works well but is sensitive to power-line fluctuations. On average, this product hangs up and needs resetting every 200 hours. On average about 45 minutes is needed to reset this product. What is this product's availability? In excess of 0.95

MTBF is 200 and MTTR is 0.75. This will leads to an availability of 0.996, so option a is the correct answer

a. In excess of .95

b.In excess of .8 but not in excess of .9

c.Not in excess of .75

d.In excess of .75 but not in excess of .8

e. In excess of .9 but not in excess of .95

7 0
3 years ago
Whenever there are supply-side market failures in the form of costs that suppliers do not have to shoulder, then there will be o
Brums [2.3K]

Answer:

The correct answer is True.

Explanation:

Externalities are caused when the production or consumption of a good or service has a cascading effect that is not purely reflected in its price and therefore there is no appropriate compensation to be paid for it. If the price does not include the true costs of the good or service there will be a market failure. Importantly, externalities can be positive or negative. To prevent refusals, governments must add certain taxes to assets to cover their social cost.

7 0
3 years ago
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