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MakcuM [25]
3 years ago
13

Suppose that the real exchange rate between the United States and Brazil is defined in terms of baskets of goods. Other things t

he same, which of the following will increase the real exchange rate (that is increase the number of baskets of Brazilian goods a basket of U.S. goods buys)?
a) an increase in the quantity of Brazilian currency that can be purchased with a dollar
b) a decrease in the price of U.S. goods
c) an increase in the price in Brazilian currency of Brazilian goods
d) All of the above are correct.
Business
1 answer:
tia_tia [17]3 years ago
5 0

Answer: an increase in the quantity of Brazilian currency that can be purchased with a dollar.

Explanation: An increase in the price of the Brazilian currency in relation to the dollar will increase the real exchange rate. This is because the exchange rate tells the amount of Brazilian baskets a US basket can buy.

The best option to relate the exchange rate with is an increase in the purchasing power of the dollar.

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<span>The marginal product of labor eventually slopes downward due to the law of diminishing marginal productivity. The law of diminishing marginal productivity is a principle within economics. This principle states even if you increase input in one area and keep the others the same, output does increase, there will be limited effect and eventually balance back out resulting in no effect on the output. </span>
5 0
3 years ago
On January​ 1, 2018​, Plummer Company issued $250,000 of 4​%, five​-year bonds payable at 102. Plummer Company has extra cash an
Anna [14]

Answer:

1. Carrying amount = $250,000

2. Cash paid to retire bond = $225,000

3. Gain on the retirement = $25,000

Explanation:

1. What is Plummer Company's carrying amount of the bonds payable on the retirement​ date?

Carrying amount of a bond payable on the retirement​ date is its par value amount.

Therefore, Plummer Company's carrying amount of the bonds payable on the retirement​ date is $100 par value for 2,500 units with a total carrying amount of $250,000.

2. How much cash must Plummer Company pay to retire the bonds​payable?

Units of bond = $250,000/$100 = 2,500 units.

Since Plummer pays the market price of $90 to retire the​ bonds, cash amount Plummer Company must pay to retire the bonds​ payable can be calculated as follows:

Cash paid to retire bonds = 25,000 * $90 = $225,000

3.Compute Plummer Company's gain or loss on the retirement of the bonds payable.

Gain (loss) = Carrying amount - Cash paid on retirement = $250,000 - $225,000 = $25,000

7 0
3 years ago
The rule of law is important because it _______. In regard to governments, the rule of law _______.
blondinia [14]
Blank 1. Protect citizens from crime and justice
Blank 2. Applies to them in only certain cases
7 0
3 years ago
Ways in which government can regulate the setting up of businesses​
svetoff [14.1K]

Answer:

  1. Tax Code. For most small business owners, government regulation questions almost always begin with taxes. ...
  2. Employment and Labor Law. ...
  3. Antitrust Laws. ...
  4. Advertising. ...
  5. Email Marketing. ...
  6. Environmental Regulations. ...
  7. Privacy. ...
  8. Licensing and Permits.

Hope this is helpful to you

5 0
2 years ago
A company had average total assets of $955,000. Its gross sales were $1,108,000 and its net sales were $940,000. The company's t
Natali5045456 [20]

Answer:

It is 0.98

Explanation:

Total Assets Turnover Ratio(TATR) =   <u>   Net Sales                </u>      

                                                            Average Total Assets

Net Assets =Gross Sales-Trade discounts-Sales tax-Sales return

TATR = 940,000/955,000 = 0.98 times

It is the ratio of a company's net sales to its average assets employed.

It is a ratio that tells how efficient the company is using its assets to generate its revenue.

The drawback of this ratio is that, if the divisional manager performance is based on this, it may sometimes leads to short-term view of performance. This  may then encourage dysfunctional behaviour which may include refusal to replace an old assets with lower based value which when replace may reduce this ratio because of the higher based value of the new assets while sales still remain the same

6 0
3 years ago
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