A rise in the domestic real interest rate would cause a fall in net exports and a RISE in the exchange rate.
In general, businesses and consumers spend less when interest rates are high. This is because borrowing money costs more when interest rates are high. As a result, companies frequently turn to the stock market to raise money, which can cause stock values to decline.
An increase in interest rates causes the local currency to appreciate. In comparison to domestic goods and services, import prices decline. Exports see a decline in profitability and competition. Exports decline while imports rise, reducing the net export portion of total demand and spending.
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Answer:
$25,891,632.37
Explanation:
The computation of the market value of the bond in two years is given below:
We know that
Market value of the bonds be in two years is
= pv(rate, nper,pmt,fv)
Here
Nper = 2
PV = ?
PMT = 25000000 × 10% = 2500000
FV = 25000000
Rate = 8%
Now
Market value of the bonds be in two years is
= pv( 8%,2,2500000,25000000)
= $25,891,632.37
Answer:
The correct answer is letter "A": Information presented by a company applies the same accounting treatment to similar events, from period to period.
Explanation:
In accounting, consistency is the principle that states a company must use an accounting method for book-keeping its transactions and the same method should be used from one period to the following. However, the consistency principle allows the company to change the current method for a more preferred method.
Answer: Opportunity cost of returning to college next year is $1,000,000.
Explanation: Opportunity cost is the cost of the next best alternative sacrificed or foregone. When the athlete chooses to join college he is sacrificing his income that could be earned from playing the game. The player has the option of playing for the minor league baseball team for $1,000,000 or for European professional football team for $500,000. The person thus has a choice between playing for the minor league baseball team (since it is the highest paying) or going to college. Thus the opportunity cost of going to college will be $1,000,000.
Answer:
$704.50
Explanation:
You add the 2 deposits together then you subtract the receipt into the answer of the 2 deposits and there you go.
