Answer:
1.98%
Explanation:
The computation is shown below:-
As we know that
PPP equation i.e
Nominal Interest rate = Real interest rate + Inflation rate
Now
The Inflation rate for Fiji is
= 5% - 2%
= 3%
And, the Inflation rate for US is
= 3% - 2%
= 1%
As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:
= (1 + 3%) ÷ (1 + 1%) -1
= 1.98%
Answer:
Explanation: Ik weet het echt niet en ik ga je plagen met mijn antwoord, ik verwacht niet dat je je moeder afbreekt op zoek naar dit haha.
Either A or C would be right, because it couldn't be a decrease of the equity.
Answer:
D. All of the above.
Explanation:
In the Aggregate Expenditure model or approach to GDP, GDP is calculated using the following formula:
GDP = C + I + G + NX (X-M)
Where:
- C = consumption
- I = Investment
- G = Government spending
- NX = Net exports
As can be seen, each of the elements of the equation are necessary to understand (calculate) GDP by the AE approach. Each element is also important to show how macroeconomic equilibrium is reached. Thus, the correct answer is D.