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alekssr [168]
3 years ago
5

There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate

regime. b) Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime. c) Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Business
1 answer:
atroni [7]3 years ago
8 0

Answer:

a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.

b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile

c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.

Explanation:

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Late-night road construction begins on a new bridge. As a consequence, traffic is rerouted past your house while the constructio
adoni [48]

Answer:

B. negative externality

Explanation:

As it is late-night the sound of the traffict will bother to sleep  for me and the entire area. This cost is not considered when performing the financial decistion but it is there as the utiliy from the conumer in that area decrease as a result of the labor in the highway to steer traffic into here.

As a result of these externality the social optimall decreases for the time the road construction end.

5 0
3 years ago
Asymmetric information occurs when A. everyone has the same information. B. people engaging in a transaction are uncertain about
melisa1 [442]

Answer:

Option (D) is correct.

Explanation:

Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.

Asymmetric information will result in two problems are as follows:

(i) Adverse selection

(ii) Moral hazard

8 0
3 years ago
Suppose the interest rate is 3.8 %. a. Having $ 500 today is equivalent to having what amount in one​ year? b. Having $ 500 in o
Sliva [168]

Answer:

a. $519

b. $481.69

c. $500 Today

Explanation:

a. Computation of amount in one year

= $500 × 1.038

= $519

for computing the 1.038 (1 + 1.038)

b. Computation of amount of today

= $500 ÷ 1.038

= $481.69

c. $500 today

No, because today I have money and it will not depend on when I need the money. I can earn interest and invest the amount till the time I need the money actually.

4 0
3 years ago
Please, help, I will award brainliest!
AysviL [449]

For lower income people:

The more the government puts towards health care would mean there would be a higher quality of life for low income areas allowing them to get access to needed healthcare for no cost to them.

For higher income people / corporate entities:

it would mean higher taxes on the 1% and 0.1% of the richer people and raising taxes on corporations such as higher taxes on dividends.

Summary:

For a SoL on one side to change another side would have to lose.

3 0
3 years ago
During 2022, Cheyenne Corp. reported cash provided by operations of $699000, cash used in investing of $604000, and cash used in
Mazyrski [523]

Answer:

$456,000

Explanation:

Free cash flow = Cash flow from operating activities - Capital expenditure

Free cash flow = $699,000 - $243,000

Free cash flow = $456,000

So, based on this information, Cheyenne free cash flow is $456,000

5 0
3 years ago
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