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DanielleElmas [232]
3 years ago
13

Assume that the Uncovered Interest Parity (UIP) holds. If the rate of retum on a euro asset is 8 percent and the rate of return

on a comparable dollar asset is 4 percent, the expected rate of dollar depreciation must be
A. -5 percent.
B. 4 percent.
C. -3 percent.
D. -4 percent.
Business
1 answer:
maria [59]3 years ago
3 0

Answer:

D. -4 percent.

Explanation:

Rate of return on Euro assets = 8%

Rate of return on Dollar assets = 4%

As per the Uncovered Interest Parity condition,

Expected rate of depreciation of the dollar

= Rate of return on Dollar assets - Rate of return on Euro assets

= 4% - 8%

= -4%

Therefore, The expected rate of dollar depreciation must be -4%.

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PLEASE HELP!!! ASAP!!! Federal law requires that employers with more than 20 employees provide an employee who has quit or been
sveta [45]

Answer:

18 months

Explanation:

6 0
4 years ago
Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate retur
katrin2010 [14]

Answer:

$21,950

Explanation:

Based on the information given Assuming both of them do not live in a community property state Eugene's taxable income will be calculated as:

Income Earned (Velma) $30,000

Less Eugene's itemized deductions ($4,000)

Less Standard deduction ($4,050)

Eugene's taxable income$21,950

Therefore Eugene's taxable income will be $21,950

5 0
3 years ago
Suppose gold​ (G) and silver​ (S) are substitutes for each other because both serve as hedges against inflation. Suppose also th
maksim [4K]

Answer:

a) Gold = $1,380; Silver = $1,020

b) Gold = $1,300; Silver = $980

Explanation:

a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:

P_g = 930-60 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1740 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,380\\P_s = 1,020

Equilibrium price of gold is $1,380 and the price of silver is $1,020.

b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:

P_g = 930-120 +0.50 P_s\\P_s = 600 - 270 + 0.50P_g\\\\-P_s=1620 -2P_g\\P_s = 330+ 0.50P_g\\P_g = 1,300\\P_s = 980

Equilibrium price of gold is $1,300 and the price of silver is $980.

8 0
3 years ago
True or false: a minimum wage below $10 per hour is a binding minimum wage in this market.
BaLLatris [955]
It's FALSE.


To be able to make the minimum wage be binding, an expert in economics calls it a minimum gross to prevent the industry market from accomplishing equilibrium a binding smallest amount wage.
It must be set above the equilibrium gross. However, below or at least $10 per hour would not be binding.
7 0
3 years ago
Read 2 more answers
Today's managers understand that the success of any effort at improving quality and productivity must include ________.
Alexus [3.1K]

Answer:

d. employees

Explanation:

As we know that the success of an organization would depend upon the performance of the employees and the quality than the company provides to its clients and the customers

Also at the same time the manager understand this that the success is based on the effort done by the employees in terms of productivity and the quality

Therefore as per the given options, the option d is correct

ANd, the rest of the options are incorrect

4 0
3 years ago
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