The ______________card can be used anywhere.

Consider an economy described by the following equations:

Ede4ka [16]

Answer:

a. exchange rate = 1

b. exchange rate = 1.5

Explanation:

(a) National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1000 = 0

National saving = 750 + 0

= 750

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1000 - 750 = 0

Thus Trade Balance = 0

NX = 0 => NX = 500 – 500e = 0

=> e = 1

Thus exchange rate = 1

(b)

National Saving = Private saving + public saving

Private saving = Y - C - T

=> Private saving = 5000 - (250 + 0.75(Y – T)) - 1000

=> Private saving = 5000 - (250 + 0.75(5000 – 1000)) - 1000 = 750

Public saving = T - G = 1000 - 1250 = -250

National saving = 750 - 250

= 500

Investment = 1000 - 50r = 1000 - 50*5

= 750

Y = C + I + G + NX

Trade Balance = Y - C - G - I = 5000 - (250 + 0.75(5000 – 1000)) - 1250 - 750 = -250

Thus Trade Balance = -250

NX = -250 => NX = 500 – 500e = -250

=> e = 750/500 = 1.5

Thus exchange rate = 1.5

8 0

3 years ago

A company has revenues of $100 during Year 1. Each year their profit is 20% of revenue. Revenue is growing 15% per year. How muc

oksian1 [2.3K]

Answer:

$406.07

Explanation:

Revenue for year 1 = $100

Profit = 20%

Growth rate of revenue, = 15% per year = 0.15

Now,

year 1 is the base year thus, take it as n = 0

Revenue for the year = $100 × ( 1 + r )ⁿ

Profit = 20% of [$100 × ( 1 + r )ⁿ]

Year n Revenue Profit

1 0 $100( 1 + r )⁰ $20

2 1 $100( 1 + r )¹ $23

3 2 $100( 1 + r )² $26.45

4 3 $100( 1 + r )³ $30.4175

5 4 $100( 1 + r )⁴ $34.98

6 5 $100( 1 + r )⁵ $40.227

7 6 $100( 1 + r )⁶ $46.261

8 7 $100( 1 + r )⁷ $53.2004

9 8 $100( 1 + r )⁸ $61.1804

10 9 $100( 1 + r )⁹ $70.357

Hence,

Total profit for the year 1 - 10 = $406.07

5 0

3 years ago

India has 3 GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. Theexchange rate is 50 rupees per US. dollar.

vekshin1

Answer:

Indian rupee in US dollars = $418

Explanation:

given data

India GDP = 23,000 billion

exchange rate = 50 rupees per US

population = 1.1 billion

solution

we get here GDP per capita as

GDP per capita = India GDP ÷ population

GDP per capita = $\frac{23000}{1.1}$

GDP per capita = 20909 rupees

so here we Convert Indian rupee in US dollars that is with exchange rate

Indian rupee in US dollars = GDP per capita ÷ exchange rate

Indian rupee in US dollars = $\frac{20909}{50}$

Indian rupee in US dollars = $418

7 0

3 years ago

Upon review of the effectiveness of a strategic business decision using evidence-based analytics, business leaders may reverse c

Ostrovityanka [42]

Answer:

The new system consist of limitations that did not examine some critical factors like, a change in time zones, and the time of pilot hours of flying .

Explanation:

Solution:

The factors that led to the turnaround of the new scheduling system is determined by the supposed offer turn around of the new system with in an advanced or highly way or method.

There are also some timely limitations under which favorable decisions can be done.

4 0

3 years ago

Macroprudential supervision policies try to prevent a leverage cycle by changing capital requirements so that they ________ duri

sdas [7]

Answer:

c) increase; decrease

Explanation:

Macro prudential policies or regulations basically aim for company's entire financial risk management. This tries to regulate the risk by various steps and measures.

In the given case also,

By increasing the capital requirements during the expansion because expansion would result in great performance and that decreasing the capital requirements during the down turn as the performance would not be good.

4 0

3 years ago