1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
5

According to the simple monetary model, if money is growing at 5% in the United States and 6% in the United Kingdom, while real

GDP if rising at 3% in the United States, and at 5% in the United Kingdom. a.What will this do to the exchange rate?b.From your answer in a above, would you increase or decrease your investments in the United Kingdom?c.What would you expect to happen to trade balance of the US? (hint: remember that trade balance = exports –imports)
Business
1 answer:
Murrr4er [49]3 years ago
7 0

Answer:

A)

Since the money supply is growing at a much faster rate than real GDP in the US, this means that the inflation rate in the US will be higher than the inflation rate in the UK. In both countries the money supply is growing at a faster rate, but the difference in the US is larger (money supply is growing 67% faster that real GDP), while the money supply in the UK is growing 20% faster than real GDP.  

This means that the US dollar should depreciate against the British pound.

B)

If you have US dollars, then you should increase your investments in the UK because the pound will be worth more US dollars in the future.

C)

More American goods should be exported to the UK, and less British goods should be imported to the US. Since the US dollar should be cheaper, American products are cheaper. The opposite will happen to British products.

You might be interested in
Question 7 (Multiple Choice Worth 4 points)
Stolb23 [73]

In a situation wherein Country Y has a progressive tax system for income, with no credits or deductions, a CEO earning $2.5 million per year would pay the most as a percentage of income in the country Y. Therefore, the option D holds true.

<h3>What is the significance of a progressive tax system?</h3>

A progressive tax system can be referred to or considered as a system wherein the percentage of tax to be levied increases with an increase in the total taxable income for an individual. The rates of taxation under this system are defined under percentage.

In the situation given above, when a CEO in country Y earns $2.5 million, i.e., more than any other person mentioned above, he will be the one who will have to pay the most taxes as a part of percentage of his income.

Therefore, the option D holds true and states regarding the significance of the progressive tax system.

Learn more about progressive tax system here:

brainly.com/question/12416177

#SPJ2

4 0
1 year ago
Read 2 more answers
Pricing objectives should be stated explicitly, stated in measurable terms, and specify a?
Delvig [45]

Pricing objectives should be stated explicitly, stated in measurable terms, and specify they have a direct effect on pricing policies as well as price setting methods.

The pricing techniques are developing, skimming, and following. develop: putting a low price, leaving a maximum of the fee in the palms of your clients, shutting off margin out of your competition.

A pricing policy is an organization's method of determining the fee at which it offers a good or provider to the market. Pricing guidelines assist organizations to ensure they continue to be profitable and supply them with the ability to price separate products otherwise. A business enterprise gives up instantaneous earnings in trade for accomplishing a higher market proportion. merchandise is priced low. Pricing objective: Maximising current profit. objectives may be set and overall performance measured speedy.

Disclaimer: your question is incomplete, please see below for complete question

A. they have a direct effect on pricing policies as well as price setting methods.

B. they are signals given to competing firms.

C. they form the basis of shareholder expectations about a firm's prospects.

D. it is required by law.

E. they are signals given to consumers.

Hence, the answer is option A.

Learn more about Pricing objectives here:-brainly.com/question/20927491

#SPJ4

8 0
1 year ago
A cover letter is ______
lara31 [8.8K]
D because in the cover letter its more like a interview where you talk about yourself rather than only talking about your strengths and weaknesses and what your applying for
6 0
3 years ago
Read 2 more answers
Suppose Megan is considering emigrating from her home country.
Evgen [1.6K]

Answer:

a. emigrate

b. more

Explanation:

Immigration attractiveness is a factor that draws immigrants to a foreign country.  A country becomes more attractive when the economic prospects are brighter than at the home-country.  The degree of immigration law enforcement also helps to either attract or deter potential migrants.  In recent years, wars and misgovernment have propelled millions to move boundaries.  At the same time, countries are imposing migration restrictions by imposing and implementing strict laws.

5 0
3 years ago
Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200
Tomtit [17]

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

3 0
3 years ago
Other questions:
  • Kara and simon are both middle managers at gotcha international. kara is dissatisfied because she knows that simon makes more in
    8·1 answer
  • A CPA can accept a gift from a client as long as:
    10·1 answer
  • Accounting for pensions receives more attention in the United States (US) than in other countries. Discuss reasons that would ex
    14·1 answer
  • Calculate income from operations for Jonas Company based on the following data: Sales $764,000 Operating expenses 52,500 Cost of
    15·1 answer
  • The law of demand states that ____________and quantity demanded are _____________ related, ceteris paribus.
    13·1 answer
  • Is this picture showing pathos, ethos, or logos? explain why.
    8·2 answers
  • Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $
    12·1 answer
  • Calculate the GDP using the data below (all figures are shown in millions)
    7·1 answer
  • 3. Which type of bank card immediately deducts payment for purchases from the cardholder's
    9·2 answers
  • If there is a recession, graduates will find it more difficult to find a job because?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!