1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Neporo4naja [7]
3 years ago
5

In January 2012, one US dollar was worth 50.0 Indian rupees. Suppose that over the next year the value of the Indian rupee decre

ases to 57.0 Indian rupees to one US dollar. Suppose also that the price level of all goods and services in India, as measured in rupees, falls 21.0%, so that the Indian price index falls from a value of 100 to 79.0. At the same time, suppose that the US price level increases by 6%, to 106.1. By what percentage did the value of the real exchange rate change over this period? Please give your answer to the nearest whole percentage point. 2. What will happen to the following as a result of the changes?a) America's consumption of Indian goods and services will likely _______.b) India's consumption of American goods and services will likely _______.
Business
1 answer:
finlep [7]3 years ago
3 0

Answer:

1. By what percentage did the value of the real exchange rate change over this period?

  • 53%

2. What will happen to the following as a result of the changes?

  • a) America's consumption of Indian goods and services will likely <u>INCREASE.</u> ⇒ (Indian goods are cheaper)
  • b) India's consumption of American goods and services will likely <u>DECREASE.</u> ⇒ (American goods are more expensive)

Explanation:

2012 ⇒ 50 rupees per 1 dollar

2013 ⇒ 57 rupees per 1 dollar

price level in India falls by 21%:

price level 2012 = 100

price level 2013 = 79

price level in the US increases by 6%

price level 2012 = 100

price level 2013 = 106

real exchange rate 2012 = [50 x 100 (US price level)] / 100 (India price level) = 50 rupees per dollar

real exchange rate 2013 = [57 x 106 (US price level)] / 79 (India price level) = 76.48 rupees per dollar

the increase in the real exchange rate = (50 - 76.48) / 50 = -53%

You might be interested in
The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales J
Mice21 [21]

<u>TC</u> Units

$64,500 (High) 2,470

} $30,700 } 2000

$33,800( Low) 470

<u>VC</u><u> </u><u>per</u><u> </u><u>Unit</u><u> </u><u>=</u><u> </u><u> </u> 30 700 ÷ 2000 = $15.35

when 470 units are sold,( substitute vc per unit = 15.35)

TC = FC + VC

33, 800 = FC + ( 15.35× 470)

FC = $ 26 586

4 0
3 years ago
The unemployment rate is the percentage of the: Group of answer choices population that is unemployed. adult population that is
IRINA_888 [86]

Answer:

labor force that is unemployed.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed.

The unemployment rate is divided into various types, these include;

1. Cyclical unemployment rate (CU).

2. Frictional unemployment rate (FU),

3. Structural unemployment rate (SU).

4. Actual unemployment rate (AU).

5. Natural Rate of Unemployment (NU).

Hence, the unemployment rate is the percentage of the labor force that is unemployed.

8 0
3 years ago
Read 2 more answers
Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of Group o
kipiarov [429]

Option d. Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of gender.

<h3>What is discrimination?</h3>

This is the type of bias that may exist in the society because of where a person is from, their tribe, religion and their beliefs.

Discrimination based on gender is an offense against an employee who is competent and qualified for a job.

Read more on discrimination here:

brainly.com/question/1084594

#SPJ1

6 0
1 year ago
The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one o
professor190 [17]

Answer:

The answer is D.

Explanation:

An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.

For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.

6 0
3 years ago
Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer'
LiRa [457]

Answer: $925.505

Explanation:

Given that,

Number of years of service = 35

Jennifer's average annual salary = $26,443

There is one assumption that she will receive 42% of her average annually.

Receive on a annually basis = 42% of $26,443

                                               = 0.42 × $26,443

                                               = $11,106.06

Jennifer expect to receive on a monthly basis = \frac{Receive\ on\ annually\ basis}{12}

                                                                             = \frac{11,106.06}{12}

                                                                             = $925.505

4 0
3 years ago
Other questions:
  • Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1
    7·1 answer
  • On July 1, 2014, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a
    13·1 answer
  • Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic
    13·1 answer
  • On July 2, Year 4, Wynn, Inc., purchased as a short-term investment a $1 million face-value Kean Co. 8% bond for $910,000 plus a
    13·1 answer
  • Businesses hold short-term securities for which of the following reasons
    12·1 answer
  • Determine whether the data set is a population or a sample. explain your reasoning. the age of each resident in an apartment bui
    11·1 answer
  • Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to gr
    8·1 answer
  • The Fire Department of a given city received an appropriation in the amount of $10,000,000 for the fiscal year ended June 30, 20
    9·1 answer
  • In 2019, Martin had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of
    12·2 answers
  • Question Mode Multiple Choice Question The total interest that accumulates over time on both the principle money deposited and a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!