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Black_prince [1.1K]
3 years ago
13

Which of the following could cause an appreciation of the real exchange rate in a small open economy? A decrease in the domestic

interest rate. The expiration of an investment tax-credit provision. An increase in government spending. An increase in taxes.
Business
1 answer:
Savatey [412]3 years ago
7 0

Answer: An increase in government spending

Explanation:

Currency appreciation is an increase in the worth of one currency against the value of another currency. Due to the appreciation of a currency, imports get cheaper.

In a small open economy, the appreciation of the real exchange rate can be caused by an increase in government spending as this puts pressure on domestic currency to appreciate, which leads to current account deterioration.

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In the Solow growth model, if two countries are otherwise identical (with the same production function, same saving rate, same d
damaskus [11]

Answer:

A) the same in both countries; the same in both countries

Explanation:

1.The steady-state level of output per worker will be the same in both countries because if their is higher growth rate of the population , the steady-state level of capital per worker will be lower which lead to lower level of steady-state income because the two countries have the same production function, same saving rate, same depreciation rate, and same rate of population growth which thereby means we have get to the Steady-State Level of Capital.

2. The steady-state growth rate of output per worker will be the same in both countries because the level of capita per worker will remain constant and does not change for both the countries because they share similar things in common.

5 0
3 years ago
Read 2 more answers
Horace is seeking to exchange money in preparation for his trip to Uruguay. He will need 5,000 Uruguayan pesos, and the exchange
STatiana [176]

Answer:

d. $ 263.50

Explanation:

The Exchange  rate is 1 dollar = 19.924 Uruguayan Peso.

We need to buy 5000 Uruguayan pesos but the agent requires a comision of  a 5%  when converting currency, so really we will need to buy:

5,000 Uruguayan pesos + 5,000 Uruguayan pesos* 0.05 = 5,250 Uruguayan pesos.

Now if we apply the given exchange rate we will obtain the amount of US Dollars we need:

x U$S = (5,250 Ur.$)/(19,924 Ur.$/U$S)= 263,50 U$S needed

7 0
3 years ago
When evaluating a balance sheet, the two primary questions are ________?
Brilliant_brown [7]

In terms of evaluating balance sheet, the two primary questions that are being formulated are the following;

-          The assets are financially secure or stable

-          The firm has assets that are sufficient and are short term in means of having debts that are only short and temporary.

4 0
4 years ago
During 2017, Zippo Company had credit sales of $650,000, and the interest receivable balance increased by $10,000. In addition,
nirvana33 [79]

Answer:

  $525,000

Explanation:

The computation of the cash collections from customers in 2017 is shown below:

As we know that

Cash collection from the customer = Opening balance of account receivable + credit sales - ending balance of account receivable

= $15,000 + $650,000 - $140,000

= $525,000

We simply applied the above formula to find out the cash collections from customer

8 0
3 years ago
The way that Nederlander's Audience Rewards program works is that patrons and new customers get free membership and are entered
Harrizon [31]

Answer:

B. Frequent-user incentives

Explanation:

Consumer sales promotion refers to the techniques that are adopted by the marketing team of the company to fascinate and excite the customers to buy the products. Customer incentive programs are one of the methods of sales promotion. In this method, the customers are provided with additional benefits via redeeming the points they collect when they purchase the products. This method also helps in maintaining customers by offering such incentives to them.

In the given excerpt, Nederlander's audience rewards program is an example of a frequent-user incentive method of consumer sales promotion.

6 0
4 years ago
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