Risk tolerance gets lower and lower as you get closer to needing the money from your investment.
If you don't need the money for 50 years, you are more likely to take risks in the stock market or other higher risk investments in return for higher rewards. If you need the money tomorrow, you will not be willing to risk it all in the stock market because even though it <em>could </em>double, you might lose it all.
A situation that would allow a country to import more goods for the same amount of money is A. The exchange rate for the country's currency increased.
<h3>What happens when exchange rates increase?</h3>
When a nation's exchange rate increases, it means the country's currency is now stronger and can buy more goods.
This means that the country will be able to import more goods for the same amount of money because that amount of money is now more valuable.
Find out more on exchange rates at brainly.com/question/1366402.
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The actions of the millions of producers is driven by self interest.
<h3>Who is a producer?</h3>
A producer is an individual or firm that makes goods and services for consumers. For example, a farmer who plants apples is a producer. Also, the owner of the lemonade stand is a producer.
The goal of a producer is to earn profits all things being equal. Profits is when total revenue is greater than total cost.
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Answer:
Change in US external wealth between periods T and T +1 in dollars = -$100
Explanation:
Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:
Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700
Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600
Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100