Answer:
D.) Keep the supply of there domestic money fixed in proportion to their gold holdings.
Explanation:
The Gold Standard was a monetary system under which countries fixed the value of their money in terms of a specified amount of gold. With the gold standard, countries agreed to convert the paper money into a fixed amount of gold.
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An increase in the interest rate should increase the demand for dollars and the value of the dollar, and net exports should decrease.Thus the correct answer is E.
<h3>What is Exports?</h3>
Exports is refers to sending of goods to foreign countries with the purpose of selling. The export help to strengthen the economy as ist brings more foreign currency into the country which boosts up the value of the economy.
An increase in the interest rate should increase the demand for dollars and the value of the dollar, and net exports should decrease. The demand for and value of the domestic currency rises when interest rates are higher because they tend to attract in foreign investment.
Therefore, option E is appropriate.
Learn more about Export, here:
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Your question is incomplete, probably the complete question/missing part is:"
An increase in the interest rate should ________ the demand for dollars and the value of the dollar, and net exports should ________.
increase; not change
decrease; decrease
decrease; increase
increase; increase
increase; decrease
Answer:
$34.62
Explanation:
Lee's manufacturing value of operation is $900 million after recapitalization
The firm has no amount of debt Before this
They also had no short term investments before the recap
After the recap wd= 1/3
Lee's had 26 million before the recap
The first step is to calculate the value of equity after recap
= (1-1/3) × 900 million
= 0.6667 × 900 million
= 600 million
Therefore the stock price after the recap can be calculated as follows
= 600 million + (300 million - 0)/26 million
= 600 million + 300 million /26 million
= 900 million/26 million
= $34.62
Hence the stock price after the recap is $34.62