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Lemur [1.5K]
3 years ago
15

A can of soda costs $0.75 in the United States and 12 pesos in Mexico.

Business
1 answer:
allsm [11]3 years ago
7 0

Answer:

a) 16 pesos per dollar

b) 32 pesos per dollar

Explanation:

If purchase-power parity holds, the exchange rate should guarantee that the can of sold would cost the same dollar amount both in the United States and in Mexico. The exchange rate is:

R=\frac{12/ pesos}{\$0.75}\\R=\frac{16/ pesos}{\$}

If the price of the soda doubles and the parity remains, the exchange rate also double:

R'= 2*R\\R'=\frac{32/ pesos}{\$}

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Answer:

The correct answer is D. increase; decrease.

Explanation:

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A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.

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3 0
3 years ago
[The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 19
Juli2301 [7.4K]

Answer:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

November 26, 2021

Accounts Payable $45,600 (credit)

Discount Received $1,824 (credit)

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Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Explanation:

November 17, 2021

Merchandise : air conditioners $45,600 (debit)

Accounts Payable $45,600 (credit)

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Accounts Payable $45,600 (credit)

Cash $45,600 (credit)

Payment is made out of the discount period of 10 days and thus Thomas Company is  not eligible for the cash discount. Thomas Company will pay the full amount owing of $45,600.

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swat32

Answer:

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Explanation:

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