Because of the identity equation that relates to net exports, the in U.S. net exports is matched by in U.S. net capital outflow.
Which of the following is an example of how the United States might be affected in this scenario? Check all that apply.
A. You store the Thai baht in your safety deposit box at home.
B. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
C. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
A. You store the Thai baht in your safety deposit box at home.
B. You exchange the THB 80,000 for dollars at your local bank, which then uses the foreign currency to purchase stock in a Thai corporation.
C. You purchase THB 48,000 worth of stock in a Thai corporation and THB 32,000 worth of Thai bonds.
1 answer:
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Answer:
1.3
Explanation:
Given:
If Good C increases in price by 30% a pound.
This causes the quantity demanded for Good D to increase by 40%.
Question asked:
What is the cross-price elasticity of the two goods ?
Solution:
We can find the cross-price elasticity of the two goods by this formula:
When Good C increases in price by 30% which causes the quantity demanded for Good D to increase by 40%, then the cross-price elasticity of the is Good C and Good D is 1.3.