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leonid [27]
3 years ago
5

g Suppose a carton of hockey pucks sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If p

urchasing power parity (PPP) holds, what is the price of hockey pucks in the United States? g
Business
1 answer:
torisob [31]3 years ago
6 0

Answer:

$74.55

Explanation:

Purchasing power parity (PPP) is a term that measures prices in different countries using a specific good.

Now, the Exchange rate of currency 1 to currency 2, S is given as:

S=\dfrac{P_1}{P_2}

P_1=Cost of good X in currency 1

P_2=Cost of good X in currency 2

$1 = CAD $ 0.71

​0.71=\dfrac{P_1}{105}\\P_1  =105 X 0.71\\P_1=\$74.55

If PPP holds, the pucks should cost the same in both markets.

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If the U.S. economy is producing at a level that is substantially less than potential GDP and the government's budget deficits a
diamong [38]

Answer:

an inflationary increase in the price level.

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.

In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.

An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.

A budget deficit is the amount by which spending exceeds income.

All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.

Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.

Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.

3 0
2 years ago
Prepare journal entries to record the following transactions and events, based on the assumption that the nonprofit uses a singl
stira [4]

Answer:

1. Apple Stocks             Dr. $75,000

  Deferred Donation Income   Cr. $75,000

2. Apple Stocks Dr. $1,500

        Gain on Apple Stocks   Cr. $1,500

3. Cash         Dr. $ 76,000

   Gain/Loss on Apple stocks Dr.$1,500

                      Apple Stocks             Cr.$76,500

Explanation:

1. when stocks are received subject to a condition that we can't recognize donation income. therefore it is recorded as liability. please note that deferred income is called as liability.

2. When value of stocks increase, asset stock of apple also increase by differential amount.

3. when asset is sold, the loss is recognized and assets are knocked off from books and cash asset is recorded.

5 0
3 years ago
It was 8:00 a.m. on Saturday morning. Liz just learned that her well-meaning cousins were headed over to help her unpack her hou
Ymorist [56]

Answer:

empowered

Explanation:

According to my research on employee roles and responsibilities, I can say that based on the information provided within the question in this situation we can say that the employee was empowered. This can be said because he too the initiative in order fix the problem in a way that would leave the customer happy and wanting to come back again.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Haddie wrote a check to the grocery store for $156.00. However, when she looks at her check register later that night, she sees
miss Akunina [59]
Depends on the banks policy. My bank is pretty good, and with my opt in overdraft protection, there are no incurred fees.
6 0
2 years ago
A study has been conducted to determine if one of the departments in MSU Company should be discontinued. The contribution margin
SOVA2 [1]

Answer:

c. decrease by $10,000 per year.

Explanation:

The contributing margin of a business is sales revenue less the variable cost to produce the product

Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.

In this scenario if the department is discounted the fixed expense will reduce by $40,000

This implies that the net income will increase by $40,000 if the department is discontinued.

If the department is discontinued income from the department will reduce by $50,000. That is -$50,000

Net income= -50,000 + 40,000= -$10,000

4 0
3 years ago
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