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Anna007 [38]
3 years ago
10

Economic expansion throughout the rest of the world raises the world interest rate. Use the Mundell–Fleming model to illustrate

graphically the impact of an increase in the world interest rate on the exchange rate and level of output in a small open economy with a floating-exchange- rate system.
Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium levels; iv. the direction the curves shift; and v. the new short-run equilibrium.

Business
1 answer:
Kobotan [32]3 years ago
5 0

Answer: The answer is provided below

Explanation:

The fiscal expansion in the rest of the world will lead to an increase in the world interest rate and a decrease in the domestic investment.

As a result, a rise in the world interest rate will lead to an increase in the national income and also lower the nominal exchange rate.

The diagram has been attached.

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Involuntary unemployment occurs when the wage rate is below the equilibrium wage rate. exists when there is an excess quantity o
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Answer:

exists when there is an excess quantity of labor supplied.

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It could be arise when there is a lacking of the aggregate demand or total demand also when there is a excess of labor supply

so according to the given situation, the second option is correct

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2 years ago
Suppose you're pitching in a softball game and facing a good hitter. you remember that you struck her out with a fastball the la
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3 years ago
The ACogs-153 company has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 24,0
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Answer:

$209,000

Explanation:

   Schedule of Cost of goods manufactured

Particulars                                                Amount

Direct materials                                        $64,000

Direct labor cost                                       $94,000

Manuf. overhead cost applied to WIP     <u>$68,000</u>

Total manufacturing costs                        $226,000

Add: WIP Inventory, Beginning                $24,000

Less: WIP Inventory, Ending                     <u>$19,000</u>

Cost of goods manufactured                   $231,000

Add: Beginning Finished goods              $53,000

Less: Ending Finished goods                   <u>$57,000</u>

Unadjusted cost of goods sold                $207,000

Add: Underapplied manuf. overhead      <u>$2,000    </u> ($70,000-$68,000)

Adjusted cost of goods sold                   <u>$209,000</u>

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