Answer:
The interest rate is higher in the US.
Explanation:
The forward price is calculated using the following formula,
F= S ( 1+Rd / 1+Rf)^t
where,
- F = Forward rate
- S = Spot rate
- Rd = Nominal interest rate in domestic market
- Rf = Nominal interest rate in foreign market
- t = time in years
We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD
The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.
We can see this by the following example,
Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)
F= 1.3 * (1.1 / 1.05)^1 => $1.362 PER 1EUR
Given that a<span>
factory machine was purchased for $375000 on january 1, 2018. it was
estimated that it would have a $75000 salvage value at the end of its
5-year useful life. it was also estimated that the machine would be run
40000 hours in the 5 years. the company ran the machine for 4000 actual
hours in 2018.
If the company uses the units-of-activity method of
depreciation, the amount of depreciation expense for 2018 would be

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Answer:
negative relation between the real interest rate and investment.
Explanation:
Loanable funds can be defined as the total income that are being saved and lend out, other than personal use or as consumption.
Also, it's the total amount investors chooses to borrow to fund their projects.
The slope of the demand for loanable funds curve represents the negative relation between the real interest rate and investment.
This slope of the demand for loanable funds usually slopes downward.
The equilibrium interest rate and quantity of loanable funds falls, when the demand for loanable funds shifts to the left.
Consumers who overuse credit run the risk of late payments, low credit scores, and even bankruptcy.
about $103 billion. is the answer