Answer:
1. Yes, overshooting is consistent with PPP. Investors forecast the expected exchange rate based on the theory of PPP. When there is some change in the market, the investors know the exchange rate will change to equate relative prices in the long run. This is why we observe overshooting in the short run. The investors incorporate this information into their short-run forecasts.
2. Exchange rates are volatile in the short run. The theory's implication that there is exchange rate overshooting (in response to permanent shocks) is one explanation for short-run volatility in
exchange rates.
Answer:
The desk clerk should offer the guest the use of the lobby wireless, which the clerk knows to be problem-free, along with a discount.
Explanation: in other to maintain the guest's cluster of satisfactions, The guest clerk should make sure that things are put in place for the guest satisfaction.
Answer:
D. $0.7572–$0.7641
Explanation:
The forward BID rate is the rate at which the buyer is willing to buy or perform a transaction while the ASK rate is at which the seller is willing to sell at.
They are calculated by Adding or Subtracting the Basis Point(BPS).
Here BPS = 0.12% AND 0.16%.
Forward bid rate =$0.7560 + 0.0012 = $0.7572
Forward ask rate= $0.7625 +0.0016 = $0.7641.
Answer:
It will take 13.2 years to reach $4,000.
Explanation:
Giving the following information:
PV= $2,000
FV= $4,000
i= 0.0525
<u>To calculate the time required to reach the objective, we need to use the following formula:</u>
n= ln(FV/PV) / i
n= ln(4,000/2,000) / 0.0525
n= 13.2
It will take 13.2 years to reach $4,000.
Answer:
$22,800
Explanation:
Flexible budget expenses = $18,000 + ($800 * 6 months)
Flexible budget expenses = $18,000 + $4,800
Flexible budget expenses = $22,800
So, the flexible budget expenses for 2021 is $22,800
