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yan [13]
3 years ago
7

Suppose a week after you get this report from your research department, you hear on the news that Colombia and Vietnam are going

to increase money supply to stimulate their economy while the United States is keeping its money supply stable, you would expect that:_______
a. Both projections will be the same since the US is keeping their money supply fixed
b. the 3 month projections for the peso would be smaller while that of the dong will be larger
c. the 3 month projections for the peso would be larger while that of the dong will be smaller
d. the 3 month projections for the peso and dong will be smaller
e. the 3 month projections for the peso and dong will be larger
Business
1 answer:
lora16 [44]3 years ago
3 0

Answer:

e. the 3 month projections for the peso and dong will be larger

Explanation:

this question is about a company that imports coffee from Colombia and Vietnam (along with 3 other countries). The report stated an estimation of the future value of the Colombian peso and Vietnamese dong. But that report is outdated and irrelevant now. Since the central banks of Colombia and Vietnam decide to increase their money supply, while the US money supply remains stable, that will result in a higher depreciation of the peso and dong. I.e. their currencies will be cheaper against the US dollar, so the estimations made before are incorrect now. The previous estimates were:

Vietnam

  • 23,205.35 Dongs per dollar - Today
  • 23,025.00 Dongs per dollar - 3 month projection

Colombia

  • 3,163.75 pesos per dollar - Today
  • 3,001.25 pesos per dollar - 3 month projection

Since the currencies will depreciate more against the US dollar, both estimates must increase, e.g. probably in 3 months $1 will be worth 24,000 dongs or 3,200 pesos.

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enyata [817]

Answer:

(a) $15

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Given that,

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allochka39001 [22]

Answer:

Decrease

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Explanation:

The question isn't complete. Here is the full question:

A study finds that the noise from airplanes is harmful; hence, the government imposes a $20 tax on the sale of every airplane. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, airplane tickets regularly sold for $190. After the tax is in place, the market price for airplane tickets rises to $200.

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The private market price is the price before the taxes: $190.

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I hope my answer helps you

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