When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, then the Mexican peso has appreciated and the U.S. dollar has depreciated.
When a currency appreciates<span>, it means it has increased in value relative to any other currency; </span>depreciate means<span> it has been weakened or fell in value relative to any other currency.</span>
The economy usually enters into DEMAND PULL INFLATION. This situation is usually describes as too much money chasing too few goods. Demand pull inflation is characterized by increase in the prices of goods and services, increase in real gross domestic product and decrease in unemployment.
Answer:
B. 1 and 2.
Explanation:
Life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.
A decedent refers to a deceased person who is no longer able to control his or her properties (wealth).
Generally, insurance companies across the globe charge millions of their customers (insured) premiums every year. This gives them the privilege of having a pool of cash which can be used to cover the cost of losses and destruction to the asset of a small fraction or percentage of its customers.
This simply means that, since insurance companies collect premium from all of their customers for losses which may or may not occur, so they can easily use this cash to compensate or indemnify for losses incurred by those having high risk.
Death benefit proceeds from a life insurance policy are included in a decedent's gross estate in the following circumstances:
I. The decedent gave the policy to his father four years ago, but retained the right to change the name of the beneficiary.
II. The policy beneficiary is a grantor trust of the decedent but the policy is owned by a closely-held corporation.
Answer:
a. Increased consumption , which shifts the aggregate-demand curve right.
Explanation:
When there is a boom in stockmarket which makes people wealthier, people's consumption would increase because of the desire and availability of money to purchase goods, which results in demand curve shifting right.
The boom in the stockmarket means people investment has appreciated hence are able to save and increase their consumption spending.
A shift in demand curve to the right means an increase in the quantity demand of goods and services while a shift in demand curve left means a decrease in the quantity demand of goods and services.
Other factor that could cause increased consumption and shifts in aggregate demand curve right is tax decrease. Tax is a compulsory levy imposed on an individual or an organization by the government.
When there is a tax decrease, people would be able to save more thus increase their desire to consume more hence demand curve would shift to the right.
