A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows.
for better understanding lets explain what conventional peg means
- conventional peg as related to when country formally (de jure) pinpoint their own currency at a fixed rate to the currency of another said country example is, from the currencies of major trading or financial partners and weights showing on the distribution of trade in different geographical zones
- The known backbone or anchor currency or basket weights are public or notified to the IMF and a country authorities are able to maintain the fixed parity through direct intervention
From the above, we can therefore say that the answer A conventional peg refers to when a country formally pegs its currency at a fixed rate to another currency or basket of currencies where the basket reflects the geographic distribution of trade, services, or capital flows is correct.
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Answer:
The slope of the consumer's budget constraint is -PA/PB.
Explanation:
The quantity of good A (Q A) is plotted along the horizontal axis, the quantity of good B (Q B) is plotted along the vertical axis.
The price of good A is PA, the price of good B is PB and the consumer's income is I.
The budget line represents the maximum possible bundles of two goods that a consumer can afford by spending his total income. The slope of the budget line will be the ratio of the prices of two goods. It represents the quantity of a good that the consumer needs to sacrifice to increase the consumption of the other good.
So the slope of the budget constraint will be -PA/PB.
Gravity ft. tyler the creator
Answer:
Month. Machine Hours. Total costs
January. 1,800 $21,500
February. 2,900 $23,200
March. 1,000. $19,750
April. 2,400. $21,000
May. 3,400. $23,900
High-Low method = 23, 900 + 21,000
= 44,900
Answer: will be straight lines with a slope of -1/2.
Explanation:
An indifference curve simply means the combination of two goods that can give a consumer equal satisfaction, and this makes the consumer indifferent.
It should be noted that along the curve, the consumer will have an equal preference which is for the combinations of the goods that are shown.
If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis, then the indifference curves will be straight lines with a slope of -1/2. Here, the fact that the slope is negative
is due to the fact that the curve is downward sloping.
