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borishaifa [10]
4 years ago
15

A country operates under a flexible exchange rate system. When the central bank lowers the interest rate during a recession, inv

estment spending will decrease, the exchange rate value of the currency will_____, and net exports will_____.
Business
1 answer:
MatroZZZ [7]4 years ago
7 0

Answer:

decrease; increase

Explanation:

This is the case because as the central bank of that country lowers interest rate, with the goal recovering from the recession, but because the interest rate is low, the value of the country's currency (exchange rate) will decrease as a result of low investment spending.

When this occurs there will be an increase in net exports as a result of foreign demand because the prices of the country's export is now lower.

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Elders are only about 13% of the population, but account for one third of all health care expenditures.
dexar [7]
What is exactly your question?

6 0
4 years ago
A comparison of leadership and management suggests that leadership is about creating a vision, while management is about carryin
umka2103 [35]

Answer:

A. True

Explanation:

Vision refers to what gives the organization a sense of purpose and a set of values that unite workers to achieve a common goal.

Leadership can be defined as the creation of vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve effectiveness and efficiency.

Management on the other hand, can be defined as the process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources. Management functions includes planning, controlling, directing, organizing, etc....

4 0
4 years ago
​Bill, a local​ inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants
dsp73

Answer:

Limited Liablity Company

Explanation:

A Limited liability Company is an independent legal entity.  It is a business structure whose owners are not liable for its liabilities. The obligations of a company are separate from those of its owners.

For Bill, a limited company will be the best form of partnership. Forming a company requires two or more people or entities coming together and establishing a new business. Bill and the drug company qualify to create a new company.  In the event of liability form sickness, Bill will be liable to the extent of his share contribution.

6 0
3 years ago
John buys a $1,000 bond that pays 6% annual interest at 75. what is john's annual yield?
lina2011 [118]

To calculate the current yield of bonds.

We have the given par value of $1000, a market price of $750 and an interest rate of 6%.

Formula of current yield: 

Yield =  (interest rate * par value)/(market price) * 100%

         =  ((0.06 *  $1000)/$750) * 100%

         = ( $60/$750) * 100%

         =0.08 * 100%

         = 8%


5 0
3 years ago
The next two questions pertain to the problem below: You researched Jersey Kids Corp on Yahoo Finance and you found the followin
Leona [35]

Answer:

The current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.

Explanation:

The current stock price of Jersey Kids Corp in 2021 can be calculated using the formula for the dividend discount model as follows:

P2021 = D2022 / (r - g) ............................ (1)

Where,

P2021 = current stock price in 2021 = ?

D2020 = Annual dividends per share paid in 2020 = $3.00

D2021 = Annual dividends per share paid in 2021 = D2020 * (1 + g) = $3 * (1 + 0.02) = $3.06

D2022 = Annual dividends per share paid in 2022 = D2021 * (1 + g) = $3.06 * (1 + 0.02) = $3.1212

r = required return = 10%. or 0.10

g = growth rate = 2% = 0.02

Substituting the values into equation (2), we have:

P2021 = $3.1212 / (0.10 - 0.02)

P2021 = $3.1212 / 0.08

P2021 = $39.02

Therefore, the current stock price of Jersey Kids Corp in 2021 is expected to be $39.02.

7 0
3 years ago
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