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Harrizon [31]
4 years ago
5

Assuming sticky prices and given expectations of future exchange rates, what is the short-run effect on the exchange rate of the

U.S. dollar (purchasing euros) and on domestic and foreign rates of return if there is a temporary increase in the quantity of euros?
Business
1 answer:
stiks02 [169]4 years ago
7 0

Answer:please refer to the explanation section

Explanation:

An increase in the quantity of euros will lead to a decrease in demand for the euros currency and the current exchange rate will fall. a decrease in the current exchange rates will increase foreign rates of return because the difference between expected exchange rate and current exchange rage will increase.

Current exchange rate will decrease and foreign rates of return will increase

total foreign rate of returns = foreign interest rate + (Expected exchange rate - Current exchange rate)/current exchange rate

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Utility bills change each monthly, so these are called _____ expenses.
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Answer: C. hope this help!!!!!
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3 years ago
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You would like to buy shares of International Business Machines (IBM). The current bid and ask quotes are $103.25 and $103.30, r
Vanyuwa [196]

Answer:

$20,650.00

Explanation:

In the equity market, when shares are being bought there are usually bids submitted that will determine the buying price, so bid price is the price at which a share is bought. In this case it is $103.25.

When selling shares the price at which it is sold is the ask price.

Therefore the price for buying the IBM shares= Bid price* Quantity

= 103.25 * 200= $20,650

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3 years ago
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In order to satisfy as many wants as possible, it is necessary to achieve productive efficiency:
charle [14.2K]

Answer:

(i) since otherwise resources are idle.

(ii) since it would be impossible to produce more of one thing without producing less of another.

Explanation:

When an economy has reached productive efficiency, all resources are being fully utilized such that if the country wants to produce more of one good, they would have to produce less of another.

It is important that a country achieves this level because it would mean that no resource is being left idle and there is no under-performance in the economy.

8 0
3 years ago
1. How does each type of economy answer the three basic economic questions?
Ganezh [65]
In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.

Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.

In a Centrally planned economy, also known as a command economy, the central government controls the factors of production and answers the three basic economic questions for all of society. Two systems often mentioned when centrally planned economies are discussed are socialism and communism.
3 0
3 years ago
Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.
lyudmila [28]

Answer:

1.29375

Explanation:

Data provided in the question:

Total investment = $10,000

Number of different common stock = 8

Portfolio's beta = 1.25

Beta of a stock sold = 1.00

Beta of the replacement stock = 1.35

Now,

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also,

change in security beta

= Beta of the replacement stock - Beta of a stock sold

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= 0.35

and,

Weight = Beta ÷ Number of different common stock

= 1 ÷ 8 = 0.125

Therefore,

Change in portfolio beta = 0.125 × 0.35

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thus,

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= 1.29375

3 0
3 years ago
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