<u>If the exchange rate between the U.S. dollar and </u><u>Japanese </u><u>yen changes from</u><u> $1 = 100 yen</u><u> to </u><u>$1 = 90 yen,</u><u> then: Japanese tourists to the U.S. will benefit.</u>
What happens in the foreign exchange market when a surplus of dollars exists?
- The supply and demand of each currency must be equal in order for the foreign exchange market to be in equilibrium, as it is in every market.
- Until equilibrium is reached, the exchange rate will change according to whether there is a surplus or shortage on the market.
What connection exists between the supply of foreign currency and the exchange rate?
- This decreases demand for exports and reduces the amount of foreign currency available, much like how domestic goods become more expensive for foreign consumers when the foreign exchange rate declines.
- As a result, there is a direct connection between the supply of foreign currency and the foreign exchange rate.
Learn more about foreign exchange
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Answer:
the marginal revenue per unit of output and the marginal product of labor
Explanation:
Marginal revenue product -
It is the market value of one of the additional unit of output , is known as marginal revenue product also called the marginal value product .
The calculation for marginal revenue product is calculated by the multiplication of the marginal revenue with the marginal product of the labor .
MRP = MR * MPL
Where ,
<u>MRP = Marginal revenue product </u>
<u>MR = marginal revenue</u>
<u>MPL = marginal product of the labor .</u>
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Answer: $1,986.14
Explanation: in order to calculate this, we will use the discounting formula and calculate the present value (PV) of the money.
PV = C/(1 + r)^n
Where:
PV = Present Value = ?
C = value of money in the future = $8,600
r = interest rate = 9% or 0.09
n = number of years = 17
PV = 8,600/(1 + 0.09)^17
PV = 8,600/(1.09)^17
PV = 8,600/4.33
PV = 1,986.14
Therefore the present value is $1,986.14
