Answer: Option(d) is correct.
Explanation:
Correct option: Neither desired net exports nor desired net capital outflow
If there is increase in the exchange rate, then there will be depreciation of the home currency. This means that now a person have to pay more for the same amount of imported goods.
The exports of a country also increases with increase in the exchange rate. So, the economy became more stronger.
And an economy rises exchange rate for stabilizing the foreign interest rate and domestic interest rate.
If the domestic interest rate is higher than the foreign interest rate then there is a inflow of capital in the home country. So, an economy increases the exchange rate to equal the foreign interest rate and domestic interest rate.
Answer:
No, you should not purchase the stock as the stock is over priced.
Explanation:
Stock Price should be
Stock Price = Dividend last year / Required Rate of Return
= $2.50 / 23%
= $10.86
The current market price of the stock is $40 so the stock is over priced as it is $10.86 that is why you should not purchase the stock.
Answer:
The most applicable answers are,
*individuals borrow less money
*interest rates rise
Explanation:
When the money supply is decreased, the interest rates between the federal reserve and the bank lending rates. This in turn increase the average landing rate sin the country, increasing the cost of borrowing and as a result, individuals and organizations tends borrow less money.
<span>Whether buyer bargaining power poses a strong or weak source of competitive pressure on industry members depends in part on how the buyer can afford the specific material on sale. At the end of the day, bargaining comes with the existence of money and affordability to consume materials.</span>
Answer:
$25,000
Explanation:
Data provided in the question
First payment will occur in a year = $1,000
Growing rate = 8%
Interest rate = 12%
So, the today value of the bequest is
= (First payment will occur in a year) ÷ (Interest rate - growing rate)
= ($1,000) ÷ (12% - 8%)
= ($1,000) ÷ (4%)
= $25,000
Hence, the today value of the bequest is $25,000
