Suppose the exchange rate is 90 yen per US dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per US dollar. if the demand for US dollars , the fed <u>sells dollars to lower the exchange rate.</u>
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When rate of exchange changes, the worth of 1 currency can go up whereas the worth of the opposite currency can go down. Once the worth of a currency will increase, it's aforementioned to own appreciated. On the opposite hand, once the worth of a currency decreases, it's aforementioned to own depreciated.
When a country's rate of exchange will increase relative to a different country's, the value of its merchandise and services will increase. Ultimately, this will decrease that country's exports and increase imports.
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The questions about risk that should someone ask before making economic choices are :
- What problem are most likely to happen ?
- What could go wrong ?
- What problem that could be most damaging ?
Hope this helps
Answer:
6.442%
Explanation:
Given:
Amount borrowed from Wendy = $1,227
Charges on loan by Wendy = 4% = 0.04
Amount borrowed from Bebe = $1,143
Charges on loan by Bebe = 6% = 0.06
Amount borrowed from Shelly= $630
Charges on loan by Shelly = 12% = 0.12
Now,
Total cost of capital = $1,227 + $1,143 + $630 = $3,000
Weight of Wendy = 
= 
= 0.409
Weight of Bebe =
= 
= 0.381
Weight of Shelly=
= 
= 0.21
The weighted average cost of capital for Eric
= ∑ (weight × cost)
= 0.409 × 0.04 + 0.381 × 0.06 + 0.21 × 0.12
= 0.01636 + 0.02286 + 0.0252
= 0.06442
or
= 0.06442 × 100% = 6.442%
In the cash flow statement financing activities refer to the flow of cash between a business and its owners and creditors.
The profit-maximizing choice for a perfectly competitive firm will occur at the level of output where marginal revenue is equal to marginal cost—that is, where MR = MC. This occurs at Q = 80 in the figure.
Marginal revenue is the increase in revenue that results from the sale of one additional unit of output.
While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
<h3>How do u calculate marginal revenue?</h3>
To calculate marginal revenue, you take the total change in revenue and then divide that by the change in the number of units sold.
The marginal revenue formula is: marginal revenue = change in total revenue/change in output.
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