Answer:
C. When the value of the domestic currency depreciates, domestic goods become less expensive relative to foreign goods, making domestic goods more attractive to domestic and foreign consumers.
Explanation:
The demand curve for foreign currency is downward sloping because a higher exchange rate makes domestic goods more expensive and viceversa.
Answer:
a). lower, higher
b). lower, lower
Explanation:
The abatement costs may be defined as the cost that is borne by a firm or an organization when it is necessary to remove any undesirable nuisances or any negative byproducts of the process that is created during the production process. It is cost incurred in eliminating a negative externality such as environmental externality like pollution.
In the context, for solving the pollution abatement cost, the tradeable emissions permits as they are tradebale, an organization with a lower abatement cost sells the permits to the higher abatement cost firms.
Even after selling, the firm still have to reduce the pollution output, then the firm that sold the permit would have lower abatement cost and the negative externality is also reduced at the lower possible cost.
Answer:
a. Current ratio
Explanation:
Current Ratio is the least likely to be affected
The Current Ratio is given as
Current Ratio = [ Current assets ] ÷ [ Current liabilities ]
Now,
Building a new plant is a fixed asset for the company.
Thus, It will add to the Fixed assets
Since,
The Formula for current ratio is independent of the fixed assets
Therefore,
It will be least affected.
While,
Debt to equity ratio = [ Debt ] ÷ [ Equity ]
Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]
Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]
in all the above relations, fixed asset will change the value of the total assets.
Hence,
They all will be affected
I think it could either be the first or third option, but I thinking the correct one should be the first option. Hope this helped :)
