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3 years ago

Currency should have all the following characteristics EXCEPT:

1 answer:

kramer3 years ago

7 0

C. It should be scare.

This is not a characteristic of the currency, because it is a nominal product of the economy behavior. Therefore, is there are plenty of goods and services in an economy, the currency must follow that.

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As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative t

Aleks [24]

Answer:

A. Todd, American, to visit Macedonia spring brew

Explanation:

Todd is a loser due to the depreciation of the U.S. dollar because now he will need more dollars to buy a comparative amount of South Korea won. His trip will now be more expensive.

An investment bank in South Korea, interested in purchasing U.S. government bonds - winner

The investment bank will exchange fewer wons for U.S. dollars than before. Buying government bonds will now be cheaper for them.

Goodyear, a firm based in the United States, sells car tires in South Korea - winner

Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper since the value of the dollar has depreciated against the currency that they hold.

A family from South Korea visits relatives in the United States - winner

The South Korean family will exchange fewer wons for more U.S. dollars, making their trip cheaper.

A firm from South Korea sells handbags in the United States - loser

The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.

An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser

The cost of the high-tech South Korean company is now higher for the American manufacturer because more dollars had to be exchanged for wons before the purchase.

4 0

2 years ago

The marginal cost curve crosses the average total cost curve at a. The efficient scale. b. The minimum point on the average tota

polet [3.4K]

Answer:

b. The minimum point on the average total cost curve

Explanation:

the marginal cost is the cost of making or producing one more additional unit of a product and then average total cost is the average of the total cost to produce units so if both these curves intersect then that means that will be the minimum point on the average total cost curve because at a point where if the marginal cost is less than the average cost then the average total cost will fall so the intersection point shows where the average total cost is a minimum because if its above that point the average total cost will rise.

6 0

3 years ago

Goods that are normally consumed together, like peanut butter and jelly, are what kind of goods?select one of the options below

BigorU [14]

The answer is a. complementary

5 0

3 years ago

Match each situation with the method of government intervention used to rectify it.

Natali5045456 [20]

1:People have too much money, and there is a danger of inflation. - B contractionary fiscal policy

2:The GDP has fallen to an all-time low, and there is low demand for most goods. - D:expansionary fiscal policy

3:Few farmers produce cotton because profits are at the equilibrium price. - A:price floor

4:Prices of staple foods have shot up because of shortages after an earthquake. - C:price ceiling

5 0

3 years ago

Read 2 more answers

Explain why, in seeking to avoid financial crisis, the government's role as regulator of the financial system does not imply it

GREYUIT [131]

Answer: Market Efficiency

Explanation:

It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.

If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.

This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.

Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.

3 0

3 years ago