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marishachu [46]
3 years ago
15

If a market basket of goods cost $100 is the US and 70 euros in France, then the PPP exchange rate would be $.70/euro.A. TrueB.

False
Business
1 answer:
blagie [28]3 years ago
6 0

Answer:

False

Explanation:

Given that,

Market basket of goods cost in United states = $100

Market basket of goods cost in France = 70 euros

Purchasing power parity is calculated as follows:

= (Cost of basket of goods in Euros) ÷ (Cost of same basket of goods in dollars)

= 70 ÷ 100

= 0.7 euro per dollar

Therefore, the statement is false.

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If the money supply increases 12 percent, velocity decreases 4 percent, and the price level increases 5 percent, then the change
dimaraw [331]

Answer: Option (A) is correct.

Explanation:

Given that,

Money supply increases (M) = 12 percent

Velocity decreases (V) = 4 percent

Price level increases (P) = 5 percent

Real GDP (Y) = ?

According to the quantity theory of money,

Percent Change in M + Percent Change in V = Percent Change in P + Percent Change in Y

                                                         12% - 4% = 5% + Percent Change in Y

                                    Percent Change in Y = 8% - 5%

                                                                         = 3%

Therefore, change in real GDP must be 3%.

6 0
2 years ago
These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing com
aleksley [76]

Debentures are bonds that are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.

Are debentures backed by assets?

Because the issuer anticipates paying back the loans with money from the sale of the business initiative they helped fund, debentures are also known as revenue bonds. Debentures are not backed by tangible property or collateral. They have the issuer's full faith and credit as their only guarantee.

What is debenture and its characteristics?

An extended source of funding is provided by the debentures. They are made up of a protracted predetermined maturity phase. The debentures are typically repaid at the conclusion of their 10–20 year maturity period. The business returns the investor's principal investment amount at maturity.

Learn more about debentures backed by assets: brainly.com/question/14788206

#SPJ4

4 0
1 year ago
Innovation and enterprise can help to develop new and niche markets - True or False?
umka21 [38]

Answer:

True.

Explanation:

A radical innovation also known as the disruptive innovation is an innovative approach aimed at destroying or supplanting old business strategies and models with an invention to breakthrough and change the whole industries by creating new products.

Hence, an innovation and enterprise can help to develop new and niche markets as the business would be starting afresh and offering new products and services to meet the unending needs or requirements of its customers.

3 0
3 years ago
"Forcing insureds to sue the insurer to collect on a claim by offering substantially less than the amount eventually recovered i
Anuta_ua [19.1K]

Answer:

Unfair Claims Settlement Practices Act

Explanation:

Here fundamentally, the act which will be acted on the given sentence is generally known as Unfair Claims Settlement Practices Act. Unfair claims practice is the inappropriate restraint of a request by an insurer or an endeavor to diminish the intensity of the claim. By interlacing in unfair claims practices, an insurer strives to diminish its values. Nevertheless, this is unlawful in various jurisdictions. Additionally, most maximum states possess formulated a version of this type of rule. Denominated essentially the Unfair Claims Settlement Practices Act, it defends safeguard consumers from the unfair manner by insurers in the appeals settlement method.

6 0
3 years ago
A government makes a contribution to its pension plan in the amount of $10,000 for year 1. The actuarially-determined annual req
miss Akunina [59]

Answer:

$10,000

Explanation:

Based on the information given we were told that the government contribution to the pension plan was the amount of $10,000 for year 1 which simply means the amount of $10,000 will be the pension expenditure for the general fund for year 1.

Therefore the pension expenditure for the general fund for year 1 will be $10,000.

3 0
3 years ago
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