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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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Creating a graphic organizer is a good strategy to use for A. recognizing a problem. B. brainstorming a solution. C. evaluating
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Answer:

B: Brainstorming a solution

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3 years ago
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barxatty [35]

Answer: The correct answer is "c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.".

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4 0
4 years ago
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of dep
luda_lava [24]

Answer: 446

Explanation:

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8 0
3 years ago
When calculating the Annual Percentage Rate, it is important to consider?
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Answer:

APR, or annual percentage rate, is your interest rate stated as a yearly rate. An APR for a loan can include fees you may be charged, like origination fees. APR is important because it can give you a good idea of how much you'll pay to take out a loan.

Explanation:

4 0
2 years ago
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