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yuradex [85]
3 years ago
13

A fall in the value of the dollar againstother currencies makes U.S. final goods and services cheaper toforeigners even though t

he U.S. aggregate price level stays thesame. As a result, foreigners demand more American aggregateoutput. Your study partner says that this represents a movementdown the aggregate demand curve because foreigners are demandingmore in response to a lower price. You, however, insist that thisrepresents a rightward shift of the aggregate demand curve. Who isright? Explain.

Business
1 answer:
Mars2501 [29]3 years ago
5 0

Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.

Explanation:

The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.

If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.

It's only a change in price that result results in a movement along the aggregate demand curve.

Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.

Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.

The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.

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A reference group acts as a point of comparison and as a source of information for an individual.
Eva8 [605]

Answer:

True

Explanation:

A reference group is that group in which the comparison is made between the individual person or the group as the case may be.

In this group, the evaluation of individual taken place with respect to nature, behaviors, and characteristics so that they can know about them i.e performance, aims, etc

Thus, it is a mix of comparison, evaluation, and personal attributes

7 0
3 years ago
CrochetCo is considering an investment in a project which would require an initial outlay of $350,000 and produce expected cash
Lelu [443]

Answer:

Ans. A) NPV= -$9306

Explanation:

Hi, the first thing we need to do is to find the after-tax cost of the firm's capital, and since all capital sources are expressed in terms of after-tax percentage, we just multiply each proportion of capital by its costs, I mean

Long term Debt (7%) * 25% +Preffered Stock(11%)*15% + Common Stock(15%)*60%

The answer to this is 12.40%.

Now, we can find the net present value of this project by using the following formula.

NPV=-InitialOutlay+\frac{CashFlow((1+Cost of Capital)^{n} -1)}{Cost of Capital(1+Cost of Capital)^{n}}

NPV=-350,000+\frac{95,450((1+0.124)^{5} -1)}{0.124(1+0.124)^{5}} =-9,306.5

Since the expected cash flow takes place 5 times form year 1 to 5, and is equal to $95,450, "n" is equals to 5 and "CashFlow" is equal to $95,450.

Therefore, the NPV of this project is -$9,306, which is answer A)

Best of luck.

3 0
3 years ago
How much will $6000 be worth if it is invested at 3.5% interest for 20 years compounded annually, semi-annually, quarterly, mont
BabaBlast [244]

Answer:

Results are below.

Explanation:

Giving the following information:

Initial investment= $6,000

<u>To calculate the future value, we need to use the following formula:</u>

FV= PV*(1+i)^n

<u>Compounded annually:</u>

n= 20

i= 0.035

FV= 6,000*1.035^20

FV= $11,938.73

<u>Compounded semi-annually:</u>

n=20*2= 40

i= 0.035/2= 0.0175

FV= 6,000*(1.0175^40)

FV= $12,009.58

<u>Compounded quarterly:</u>

n= 20*4= 80

i= 0.035/4= 0.00875

FV= 6,000*(1.00875^80)

FV= $12,045.78

<u>Compounded monthly:</u>

n= 20*12= 240

i= 0.035/12= 0.00292

FV= 6,000*(1.00292^240)

FV= $12,079.84

<u>Compounded weekly:</u>

n= 20*52= 1,040

i= 0.035/52= 0.000673

FV= 6,000*(1.000673^1,040)

FV= $12,078.71

<u>Compounded daily:</u>

n= 20*365= 7,300

i= 0.035/365= 0.000096

FV= 6,000*(1.000096^7,300)

FV= $12,091.78

3 0
3 years ago
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In one sentence, briefly explain why a secretary must finalise his or her minutes in the shortest possible time after a meeting
USPshnik [31]

Answer:

Every set of minutes should include basic information about the meeting, starting with the meeting type -- committee or general -- and the time and date at which it started. The secretary should also record the names of all parties present as well if any members were excused from the meeting before it opened. If members arrive late to the meeting, note the time at which they arrived. In addition, if a proxy represents a member or a quorum of members, such as the case of a shareholder's meeting, the minutes should reflect his presence. The secretary should also record the time at which the meeting adjourns

Explanation:

 Couldn't have been in one sentence but i hope i helped! xoxo

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Answer:

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Explanation:

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