1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mina [271]
3 years ago
9

The long-run Fisher effect links rises in inflation with rises in nominal interest rates by the same proportion, resulting in __

__ the demand for money. Group of answer choices an increase in an increase in the supply of money offsetting the increase in no effect on a decrease in
Business
1 answer:
jekas [21]3 years ago
6 0

Answer:

an increase

Explanation:

As according International Fisher effect theory, we have:

<em>Real interest rate = Nominal Interest rate - Inflation rate </em>

As nominal interest rates and inflation rate increase by the same proportion <em>t (t>0)</em><em> (Nominal Interest rate - Inflation rate) x t = Real interest rate x t </em>

<em>=> Real interest rate would rise </em>

<em />

When the domestic real interest rate increases:

+) The demand of domestic market for foreign assets decreases

=> The supply for domestic currency decreases (1)

+) The demand of foreign market for domestic assets increases

<em>=> The demand for domestic currency increases (2)</em>

Opposite result for foreign currency.

You might be interested in
The scenarios each illustrate a principle of economics. classify each scenario according to the principle that best fits it. you
storchak [24]

David's decision on the electronics to purchase represents opportunity cost.

The decision to hire another economist is marginal analysis.

Ana's decision on how to use her time involves opportunity cost.

<h3>What is opportunity cost?</h3>

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives. When an economic agent chooses one option, he would not be able to choose another option.

<h3>What is marginal analysis?</h3>

Marginal analysis involves comparing the marginal cost or / and the marginal benefit of a decision.

To learn more about opportunity cost, please check: brainly.com/question/26315727

#SPJ1

8 0
2 years ago
Shuster’s lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord’s proof of the co
Assoli18 [71]

Answer:

correct option is c) with prompt notice.

Explanation:

solution

Shuster lease by Thurgood  for pay certain fee  so the tenant can rescind the with prompt notice because Shuster is overcharge without the any explanation its mean that Thurgood is not performing his any duty rightly

so that Shuster is entitle to the withdraw an contract

correct option is c) with prompt notice.

4 0
3 years ago
You have just turned 30 years​ old, have just received your​ MBA, and have accepted your first job. Now you must decide how much
Nata [24]

Answer:

Annual deposit= $21,568.87

Explanation:

Giving the following information:

You have just turned 30 years​ old. Every dollar in the plan earns 9 % per year. You cannot make withdrawals until you retire on your 60th birthday.

You will need $ 98,000 per year starting at the end of the first year of retirement and ending on your one-hundredth birthday.

First, we need to calculate the total amount needed at age 60.

Final value= 30years*98,000= $2,940,000

To calculate the annual deposit we need the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (2,940,000*0.09)/[(1.09^30)-1]= $21,568.87

4 0
3 years ago
Quarter Inc. is an Italian company that set up its ventures in the United States. It sells watches—designed and manufactured in
spin [16.1K]

Answer: D

Explanation: Quarter Inc. cannot be legally charged because as a foreign entity, it is exempt from prosecution based on sovereign immunity. Once the defendant establishes that it is a foreign state, for the lawsuit to proceed, the plaintiff must prove that one of the Act's exceptions to immunity apply.

4 0
3 years ago
The past five monthly returns for Kohl’s are 3.54 percent, 3.62 percent, −1.68 percent, 9.25 percent, and −2.56 percent. Compute
luda_lava [24]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

6 0
3 years ago
Other questions:
  • Cups of coffee of milk tea are substitutes. assume both have in elastic demand. Suppose exceptionally good weather increases the
    10·1 answer
  • perations management is part of a production system that can be described in the following manner: Organization: inputs→processe
    11·1 answer
  • What is the most effective way to get a yes or no response in an interview?
    8·1 answer
  • Demand-pull inflation is caused by: An increase in aggregate supply. An increase in resource costs as an economy's production ca
    8·1 answer
  • Reminder advertising is primarily used to
    6·1 answer
  • Can you help me with a synonym and antonym for race like skin color.
    10·1 answer
  • When the Fed increases the reserve requirement, banks: must increase the dollar volume of loans they make to customers. must pay
    14·1 answer
  • When Proctor and Gamble removed potentially dangerous dyes and chemicals from its Tide detergent product and introduced Tide Fre
    15·1 answer
  • Consider the following production process for manufacturing biscuits. The first step of the process is mixing where all of the i
    8·1 answer
  • What is meant by reconciliation, and how can it be useful as an input to staff ing planning? wuizlet
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!