Answer:
a higher interest rate
Explanation:
In the case when there is a supply of real money and it becomes constant so here the liquidity preference theory denotes that if there is a level of the higher income so it would be consistent with the interest rate i.e. higher
The liquidity preference theory means the theory where the investor demand the rate of interest i.e. higher that has long term maturities with high risk
So as per the given situation, the higher interest rate is the answer
Answer: Market Penetration Pricing.
Explanation:
MPP, Market Penetration Pricing is a where a company uses a strategy to attract customers to their product. Which also means lowing the price for customers to buy their products.
When lowing a price: This strategy is used to attract customers, they buy their product - then if they like it they will keep buying it even if the price is raised. This is a common strategy for tons of company brands.
Answer:
$1.0391
Explanation:
The question is asking for the calculation of the present value of a future sum.
First, the Future Value = $120,000 = FV
The number of years to achieve the value is = 23 years = N
and the earning interest rate per year is 66%= r
Based on these information, the formula for calculating the future value is as follows:
FV / (1/ (1+ r)∧)n)
Using the formula, we have the following:
$120,000/ [1/(1+0.66)∧23]
$120,000 /(1/115474.48258)
$120,000/ (0.0000086599)
=$1.0391
Answer: Swiss chocolate will become more expensive in the United States.
Explanation:
If the American dollar depreciates relative to the Swiss Franc then Swiss chocolate will become more expensive in the US.
This is because goods belonging to the country with the stronger currency will be more expensive in the country with the weaker currency.
For example, let's say the rate of USD to Franc was 1:1 and swiss chocolates cost Fr5 that means it would cost $5 as well in the US.
Now suppose the rates become, USD to Franc, 1.25:1 meaning the Franc is stronger now. The price of chocolate in Switzerland is still Fr.5 but now in the US it will go to,
= 5 * 1.25
= $6.25 meaning Swiss things are now more expensive in the States.
NB - Your third option says, "American computers will become less expensive in Italy". If this was a typo and you meant, "in Switzerland" then this option is CORRECT as well because American goods will be cheaper in Switzerland.
Cheers.