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:
(C) 18,844.47
Explanation:
You need to use the Inflation-Adjusted Return formula:
So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process
And so on...
Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer
Online calculator:
https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/