All categories

3 years ago

According to, "Ditching the Dollar," having multiple reserve currencies to choose from is healthy because:

Business

1 answer:

posledela3 years ago

8 0

Answer: D. If one country creates all the reserves it can prevent other countries from trading.

Explanation:

<em>Ditching the Dollar</em> refers to a movement by nations to reduce the dependence on the US. dollar for transactions.

The USD is the major currency for trade around the world with it accounting for the currency of use in more than 50% of the entire World trade. This was due to the Bretton Woods Agreement and System which at the time pegged the USD to gold and other currencies at certain value to the USD.

The influence the USD gained that day continues today. Countries however are increasing becoming fed up by the United States using the Dollar to impose trade restrictions and sanctions on countries and then requiring everyone to fall in line because trades are mostly done in the currency controlled by the US, the USD.

For instance, when sanctions were imposed on Iran, the European Union looked for alternative means of payment for Iranian oil.

Ditching the Dollar therefore argues that having multiple reserve currencies to choose from is healthy because one country will not be able to control world trade as the US has.

You might be interested in

Juan is a nursing student from Peru who first arrived in F-1 immigration status on September 1, 2019. He does not have a tax ide

kolezko [41]

Answer:

True

Explanation:

Form 1040 NR is a document that is filed by U.S. residents. The taxable income is filled in the document to identify tax paynment or refund. Juan is student and he is dependent on the interest income that comes from the saving which is by their parents earnings. The interest income saves the tax and there will be refund on this income. Juan should file the 1040-NR document.

3 0

3 years ago

A company’s planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company

Marina86 [1]

Answer:

The total manufacturing overhead is $200,100

Explanation:

The flexible budget prepared below is based on the original budget for 100,000 machine hours adjusted to 90,000 hours

indirect materials(variable)$50,000/100,000*90,000=$45,000

depreciation(fixed) =$37,500

indirect labor(variable )$80,000/100,000*90,000 =$72000

taxes(fixed) =$7,500

factory supplies(variable)$9000/100,000*90000 =$8,100

supervision(fixed) =$30,000

total manufacturing overhead $200,100

The total manufacturing overhead is $200,100 based on the fact that variable cost varies with output while fixed costs remain the same

4 0

3 years ago

The demand for gasoline is inelastic and the supply of gasoline in the winter is elastic. Therefore,

MakcuM [25]

Answer:

B. buyers bear most of the incidence of the tax.

Explanation:

If demand is inelastic, quantity demanded is insensitive to changes in price.

If supply is elastic, a small change in price has a great effect on quantity supplied. Quantity supplied is sensitive to changes in price.

If a tax is imposed on gasoline, the incidence (who pays for the tax) can be beqred by the consumers because they have an inelastic demand. If the price of gasoline rises , the quantity demanded doesn't change.

If the tax incidence was borne by the suppliers, the quantity supplied would drop.

I hope my answer helps you.

3 0

3 years ago

A seller has accepted an offer from John. John wants to remodel and add an outdoor pool when he has enough equity built up to co

nika2105 [10]

Answer:

make a 40% down payment upfront

Explanation:

The best arrangement that would help him accomplish this would be to make a 40% down payment upfront. The best way to build equity as fast as possible is to put down the biggest down payment that you can. The bigger the down payment, the higher the boost in equity that you will receive. That is why it is the best option. Anything above 20% down payment is the ideal scenario, while 40% would be perfection.

4 0

2 years ago

In an economy without government purchases, government transfers, or taxes, aggregate autonomous consumer spending is $750 billi

Shalnov [3]

Answer:

$1,050 billion + [(0.75) x YD]

Explanation:

To determine the expression for planned aggregate spending we must first add consumer spending and planned investment spending = $750 billion + $300 billion = $1,050 billion. Then for the rest of the equation we must multiply the marginal propensity to consume (0.75) times disposable income.

5 0

3 years ago