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Korvikt [17]
3 years ago
15

9. Problems and Applications Q9 Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodit

y is Spam. In 2015, a can of Spam cost 4 dollars in Ectenia and 24 pesos in Wiknam. The exchange rate between Ectenian dollars and Wiknamian pesos was pesos per dollar. Over the next 14 years, inflation is expected to be 5 percent per year in Ectenia and 10 percent per year in Wiknam. If this inflation comes to pass, what will happen over this period to the price of Spam and the exchange rate? Over this period, the price of Spam in Ectenia will , and the price of Spam in Wiknam will . (Hint: Recall the rule of 70 from Chapter 27.) The exchange rate between the two countries will .
Business
1 answer:
LenaWriter [7]3 years ago
6 0

Answer:

In this case, one dollar is worth three pesos.9

Explanation:

Base on the scenario been described in the question, the exchange rate between the two countries will be gotten as follows

Since the purchasing-power parity (PPP) normally holds, the exchange rate will be (2/6) = 1/3dollars/peso. That is, one peso will buy you one third of a dollar. Alternatively,we can write this as (6/2) = 3 pesos/dollar. In this case, one dollar is worth three pesos.9

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Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer
ruslelena [56]

Answer:

Following are the responses to the given question:

Explanation:

  • In point a, it is false because the ownership of a stock owned by shareholders is directly adaptable by sale.
  • In point b, it is false because the corporate bosses have no responsibility. A corporate company is an organization
  • In point c, it is true because This company is going on a broad-based business. Its necessary capital is enormous but is obtained from three sources.
  • In point d, it is true because the company money is calculated twice in normal conditions, except for where tax-deductible is declared for both the dividends in shareholders' hands.
  • In point e, it is true because Its company's legality is distinct from those of its owners. That both companies, as well as the owner, are separate legal entities. Firms have a common seal as well as their titles.
  • In point f, it is false because UNLIMITED was its life of corporates and the foundation of the 'Moving Concern' idea.
  • In point g, it is true because the actual owner isn't a business agent. They're only the owner that gives money.
7 0
2 years ago
A company uses the percent of sales method to determine its bad debts expense. Atthe end of the current year, the company's unad
nevsk [136]

Answer:

Explanation:

The journal entries are shown below;

Bad debt expense A/c Dr   $2,421

  To Allowance for doubtful debts  A/c  $2,421

(Being bad debt expense is recorded)

The computation of the bad debt expense is given below

= Net sales × estimated percentage given

= $807,000 × 0.3%

= $2,421

To determine the estimated bad debt expenses we debited the bad debt expense account and credited the allowance for doubtful debts

8 0
3 years ago
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.8 million ca
Phantasy [73]

Answer:

A a) Journal Entry for Precision Castparts

Debit Bank $39.8 million Credit Note Payable $39.8 million

b) Journal Entry for Midwest bank

Debit Note Receivable $39.8 million Credit Bank $39.8 million

B a) Journal Entry for Precision Castparts

Debit Interest Expense $796,000 Credit Interest Payable $796,000

b)  Journal Entry for Midwest bank

Debit Interest Receivable $796,000 Credit Interest Income $796,000

C a) Journal Entry for Precision Castparts

Debit Note Payable $39.8 million Debit Interest Payable $796,000 Debit interest Expense $2,388,000 Credit Bank $42,984,000

b) Journal Entry for Midwest bank

Debit  Bank $42,984,000 Credit Note Receivable $39.8 million Credit Interest Receivable $796,000 Debit interest Income $2,388,000

Explanation:

Interest up to 31 Dec 2021

Interest = 39,800,000*8% = $3,184,000*3/12 =$796,000

8 0
3 years ago
Please help :< Marking brainliest <3 Ms. Rivera needs advice. She wants to pay her taxes on time and figure out how she ca
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Answer:

This is just a guess but personal.

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4 0
1 year ago
Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole num
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Answer:

A. $200

B. Fall

C. Inflationary expenditure gap and employment levels are higher than the full employment level.

Explanation:

A. Equilibrium occurs where real output (Y) equals aggregate expenditures (AE), where AE = C + Ig+ G +Xn.

Therefore the equilibrium value is:

Y = AE = C + Ig+ G +Xn

= $120 + $60 +(-$10) +$30 = $200

B. If real GDP is $230 and the aggregate expenditures of $200 will result in positive unplanned inventory investment which means GDP will fall as firms respond to the inventory build-up by reducing output.

C. C + Ig+ G +Xn

$170 + $60 + (−$10) +$30 =$250

Therefore since full-employment and full-capacity output in the economy is $230 there is an inflationary expenditure gap and employment levels are higher than the full employment level.

8 0
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