The reasons for high export instability in LDCs than DCs are: Specialization in production and exports of primary products, Commodity Concentration and geographical concentration of export markets (Hock, 2007).
Answer: A) decrease the interest rate on a loan
<em>Input:</em> Making a down payment will decrease the interest rate on a loan.
Explanation: When you make a down payment you are making a payment. This will decrease the interest rate on a loan.
Answer:
Her real income has decrease by $7,333.33
Explanation:
<em>Real income is the amount of goods and services that a give amount of quantity money can purchase. It is also known as the purchasing power of money. </em>
To determine if there has been a change in her real income, we will compare her real income 20 years ago to her real income 5 years later. This will be done as follows;
Step 1
Determine her real income 5 years after her last reunion
Real income in current year = (CPI in base year/CPI in current year ) × Nominal income
= (80/150)× 80,000
= $42,666.67
Step 2
Determine change in real income
Her real income has decrease by $7,333.33. This is difference between her real income 5 years ago and now. That is $50,000 - $42,666.67.
Tis implies she cannot purchase as much as she could 5 years ago because of inflation.
