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Natalija [7]
3 years ago
7

Imagine that there are two economies in the​ world: Bostonia and New Yorkland.​ Bostonia's currency is the sock and New​ Yorklan

d's is the yank. Despite the​ long-standing rivalry between their​ citizens, Bostonia and New Yorkland are trading partners. The Central Bank of New Yorkland decides to conduct contractionary monetary policy. What would be the​ short-run effect, if​ any, on the​ yank/sock nominal exchange​ rate?
Business
1 answer:
BigorU [14]3 years ago
3 0

Answer:

Yank appreciates in relation to Sock

Explanation:

A contractionary monetary policy either results in increased interest rates in New Yorkland or reduced money supply or both.

Increased interest rated would mean that people would save more to take advantage of an increased saving rate. This would cause people to save money and thus reduce the supply of money. The law of demand and supply suggests that lesser supply would up the price that is it would appreciate. This is also true as people in Bostonia may also want to save in New Yorkland thus reducing the supply further as they demand more Yank.

Reducing the money supply any other way would mean as both countries are trade partners there will be demand for Yank but as supply is constricted, it would again appreciate.

Hope that helps.

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You are a financial adviser working with a client who wants to retire in eight years. The client has a savings account with a lo
kramer

Answer:

$201,866.28

Explanation:

Using a financial calculator, input the following to calculate the the amount that would be required today to meet the goal; calculate present value (PV).

Future value ; FV = 1,000,000

Recurring payment PMT = 0

Total duration of the investment ; N = 8

Annual interest rate; I/Y = 9%

then  compute the present value ; CPT PV = $501,866.28

Since she already has $300,000, find the balance;

Additional money needed = $501,866.28 -$300,000 = $201,866.28

6 0
4 years ago
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate o
Bess [88]

Answer:

r = 0.235 or 23.5%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market return

r = 0.06 + 2.5 * 0.07

r = 0.235 or 23.5%

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3 years ago
Conlon chemicals manufactures paint thinner. information on the work in process follows: • beginning inventory, 40,000 partially
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3 years ago
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of wh
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3 years ago
Assume that prosecutors allege that 20 percent of youth were exposed to vaping because of juul’s actions, and juul counters that
DaniilM [7]

Given the circumstances mentioned by Juul's behavior, the framing bias would be the bias used in this decision-making process.

<h3>What is a bias in decision-making?</h3>

This phrase is used to explain the kind of bias that individuals would have to exhibit on how they would take in information and how they would be able to develop opinions.

Framing bias is a kind of prejudice that has to do with the bias that results from how circumstances are presented and are often not created by the facts that are given in situations.

To learn more about decision-making bias.

brainly.com/question/3078929

#SPJ1

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