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:
The correct answer is option (B) perfectly inelastic
Explanation:
It is a known facts that anytime tax is imposed on any goods at any given time, the tax falls totally on the consumers provided the elasticity of demand is zero.
Since increase in tax doesn't affect the demand for goods and services, and no matter the increment in price from the supplier, the demand remains the same. Therefore, the demand curve for goods Y is said to be perfectly inelastic.
Answer:
The Total Budgeted Sales of May is $944,000
Explanation:
Budgeted sales are those sales which a business estimated in a particular period of time. While budgeting the future value company calculated the sales cost and other expenses to minimize the uncertainty and prepare for the future.
As per given data
In May
Budgeted sales Volume = 3,200 cookwares
Budgeted price per unit = $295
Budgeted Sale value = Budgeted Volume x Budgeted Sales price = 3,200 cookwares x $295 = $944,000
Cash Sales = $944,000 x 25% = $236,000
Credit Sales = $944,000 x 75% = $708,000
<span>They can file the bankruptcy code under chapter 11.
</span>This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11<span>.
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