All categories

4 years ago

How does a change in a country's real exchange rate affect its net exports?

1 answer:

8 0

Answer: (C) When a country's real exchange rate appreciates, it imports more and exports less, causing its net exports to fall.

Explanation:

When a country's real exchange rate appreciates i.e the value of its currency increases, it imports more because more products could be bought with the same amount of the currency as a result of its increased value, and it export less because their goods would become more expensive for other countries resulting in reduced demand. Therefore, resulting in the fall of its net export. This is a form of trade balance.

You might be interested in

match the business analytic tool with the question it sets out to answer. question 30 options: optimization statistical analysis

USPshnik [31]

The correct answers are 1:D, 2:C, 3:D, and 4:A for the business model and questions related to it.

This can be explained as follow:

Questions--- Business models

1. Why is this happening?- Statistical analysis

2. What if these trends continue?- Forecasting/extrapolation model

3. What will happen next?- Predictive modeling

4. What is the best that can happen?- optimization model

The complete question is:

Match the business analytic tool with the question it sets out to answer. options of questions are:

1. Why is this happening?

2. What if these trends continue?

3. What will happen next?

4. What is the best that can happen?

Match them with the following models:

A. Statistical Analysis

B. Predictive modeling

C. Forecasting/extrapolation

D. Optimization

To learn more about financial analysis please click on the given link: brainly.com/question/28388002

#SPJ4

6 0

1 year ago

Of the following sets of accounting entries, which one correctly records the purchase of a piece of equipment? A : a $15,000 inc

Butoxors [25]

Answer: The correct answer is B : a $5,000 decrease in cash, a $15,000 increase in notes payable, and a $20,000 increase in equipment, all entered on the same date.

Explanation: The option B is correct because we are accounting for a purchase of a piece of equipment. The options in the questions show that the purchase was partly through cash and partly through notes payable. Since that is the case, the appropriate entries should record a cash outflow (credit to cash to decrease it), increase in notes payable as a result (credit to notes payable to increase) and subsequently, increase in equipment (debit to equipment). <em>So, the total credits equal the total debit.</em>

<em />

3 0

3 years ago

In 2009, regulations for credit cards were changed by A. agreements between bankers and borrowers. B. the Credit Cardholders' Bi

Leni [432]

Answer:

The correct answer is B. the Credit Cardholders' Bill of Rights.

Explanation:

Basically, the new rule is intended to protect consumers from an arbitrary increase in interest rates, fees, and other finance charges, and prohibits banks from raising interest based on the customer's past due payment history with another banking institution. In addition, entities must allow customers to pay their bills online or by phone, without charging an additional fee, and must notify 45 days in advance of any change in interest rates so that the customer has enough time to review the new terms.

5 0

4 years ago

A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 years. The winner calculates the

Semmy [17]

Answer:

Yes, her decision was correct because of Net present value rule.

Explanation:

the net present value (NPV) applies to a series of cash flows occurring at different times.

The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications.

Time value of money dictates that time affects the value of cash flows.

5 0

3 years ago

Read 2 more answers

3) Tobi owns a perpetuity that will pay $1,500 a year, starting one year from now. He offers to sell you all of the remaining pa

Lesechka [4]

Answer:

you should pay up to $2,737.84 to Tobi

Explanation:

first, the terminal price of the perpetuity must be determined = annual payment / r = $1,500 / .08 = $18,750

now, the present day value of the future terminal value

present value = future value / (1 + r)ⁿ = $18,750 / (1 + 8%)²⁵ = $2,737.84

5 0

3 years ago

How does a change in a​ country's real exchange rate affect its net​ exports?

How does a change in a country's real exchange rate affect its net exports?