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Dominik [7]
4 years ago
7

If the United States wanted to reduce the cost of its goods in foreign markets, it could ________ its currency.

Business
1 answer:
Kruka [31]4 years ago
3 0

Answer:

Devalue its currency

Explanation:

Exchange Rate is the conversion rate of domestic & foreign currency.

Eg $1 =   _ € .

Devaluation means deliberate fall in value of domestic currency in terms of foreign currency (increase in foreign exchange rate) , under fixed exchange rate by government.

Eg :  $1 =   5€ - change to -  $1 = 7€ . This implies dollar can purchase less amount of euro , and has depreciated.

However , this would also lead to reduce the cost of its exports in foreign (here European market) , because US $ has become cheaper in terms of their currency & hence so have been their goods.

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When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve buys bonds, then the money s
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Answer:

The correct answer is:  shifts rightward, causing the price level to rise.

Explanation:

The money supply curve portraits the money supplied in the market at a specific interest rate. The money supply is increased by the central bank by purchasing bonds or other assets -in this case, the Federal Reserve- causing the money supply curve more to the right which at the same time lowers the interest rate.

7 0
3 years ago
4) Double-declining-balance depreciation: A) is an accelerated depreciation method. B) ignores the residual value in computing d
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Answer:

Option D is correct.

Explanation:

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3 years ago
Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he
mario62 [17]

Answer: Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700.

Explanation:

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A = 2000(1+(0.085*10))

= 2000(1+0.85)

= 2000(1.85)

= 3,700

Bank B was offering 8% compounded annually

= A = P(1+r/n)^nt

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A= 2000(1.08)^10

A= 2000*2.1589

= 4,317.85

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konstantin123 [22]

Answer:

D. demand is unitary elastic.

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A unitary elastic demand means that the quantity demanded will change proportionally to any change in the price of the product or service. E.g. price decreases by 10%, then quantity demanded will increase by 10%.

The marginal revenue curve represents the additional revenue generated by selling one more unit. As the marginal revenue curve approaches 0, it means that selling one additional unit generates lower revenues.

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3 years ago
Tina's mother and father pay her car insurance as long as she makes good grades. This is an example of which economic concept? A
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