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Anvisha [2.4K]
3 years ago
10

If inflation in the United States is 4% per year and in the United Kingdom it is 8% per year, and interest rate in the United Ki

ngdom is 6%, then the Fisher effect predicts that the interest rate in the United States is:
Business
2 answers:
mihalych1998 [28]3 years ago
3 0

Answer:

The correct answer is 2%.

Explanation:

The fisher effect describes the relationship between interest rates in two countries and the exchange rate of their currencies. In this example, it is said that the difference between the interest rate vs the inflation of the united group shows a difference of 2% that the United States is also expected to experience with an annual inflation rate of 4%.

Ronch [10]3 years ago
3 0

Answer:

2%

Explanation:

Given:

  • Inflation in the United States is 4%
  • Inflation in the UK is 8%
  • Interest rate in the United Kingdom is 6%

As we know:

Nominal interest rate = Inflation rate + Real interest rate

Let analyse the nominal interest rate in the UK

<=> Real interest rate = 6% - 8% =- 2%

Then the Fisher effect predicts that the interest rate in the United States when applying the global interest rate is:

= Nominal interest rate = Inflation rate + Real interest rate

= -2% + 4%

= 2%

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Answer:

Gap management is a strategy which every business follows. A business can be successful only if it sets goals for its future.

Explanation:

Gap management is the difference between where an organization stands today and where it wants to be in future. A company's management will set its own targets and then sets position of the company. There are limitation of gap management as there can be targets which are sometimes unachievable or there are some external forces which hinders the business progress.

5 0
2 years ago
The following data is obtained from the general records in the shipping department at Rapid Parcel Delivery Company for August:
solong [7]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
3 0
3 years ago
On May 31, 2018, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the ent
asambeis [7]

Answer:

$800,000

Explanation:

The calculation of book value of the assets of the cosmetics component is given below:-

Gain on Sale of the Assets = Income from Operation of a Discontinued Components - Income from Operations

= $620,000 - $300,000

= $320,000

Gain/Loss on Sale of Asset = Sale Value of Assets - Book Value of Assets

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5 0
2 years ago
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:Andy's demand
notsponge [240]

Answer: Andy's demand for beer to increase

Explanation:

Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.

7 0
3 years ago
The relationship between the natural environment and business organizations can best be described as:_________
Marina86 [1]

The relationship between the natural environment and business organizations can best be described as <u>c. Interdependent.</u>

<h3>What is interdependence?</h3>

Interdependence describes a situation where two entities engage in exchanges for their continued sustenance.

Interdependence exists in many forms and between different organizations.

For instance, the natural environment of a business provides the resources that the organization requires for productivity and profitability.  

Similarly, the natural environment utilizes the products and services of business organizations for continued development.  Business organizations also protect the natural environment for their self-interest.

Thus, there is an interdependent relationship between the natural environment and the business organizations because one cannot exist sustainably without the other.

Learn more about the interdependence of the natural environment and business organization at brainly.com/question/23479668

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<h3>Question Completion with Answer Options:</h3>

a. A U-shape

b. Insignificant

c. Interdependent

d. Unconnected

6 0
1 year ago
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