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hammer [34]
2 years ago
5

Under a flexible-price monetary approach to the exchange rate Group of answer choices when the domestic money supply falls, the

price level would fall right away, causing an increase in the interest rate. when the domestic money supply falls, the price level would fall right away, causing a reduction in the interest rate. when the domestic money supply falls, the price level would fall right away, keeping the interest rate constant when the domestic money supply falls, the price level would eventually fall, increasing the interest rate. when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.
Business
1 answer:
Anastaziya [24]2 years ago
6 0

Answer:

when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

The flexible-price monetary model was developed by Frenkel and Mussa in 1976 and it states that the prices of goods are flexible while the purchasing power parity (PPP) is always constant.

Under a flexible-price monetary approach to the exchange rate when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

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Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery ba
koban [17]

Answer:

d. 5.14%.

Explanation:

Calculation to determine the best estimate of the after-tax cost of debt.

First step

Based on the information given we would make use of rate formula in excel.

=rate(nper,pmt,-pv,fv)

Where,

nper= coupon every six months for 20 years = 40 coupon payments

Pmt =$1000*7.25%*6/12=$36.25

Pv = $875

Fv =$1000

Let plug in the formula

=rate(40,36.25,-875,1000)=4.28% semiannually

=4.28% *2=8.56% annually

Now let calculate the after tax cost of debt using this formula

After tax cost of debt=8.56%*(1-t)

Where,

t represent tax rate of 40%

Let plug in the formula

After tax cost of debt=8.56%*(1-0.4)

After tax cost of debt=5.14%

Therefore the best estimate of the after-tax cost of debt is 5.14%

8 0
2 years ago
Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are
mafiozo [28]

Answer:

The answer is "205,241"

Explanation:

Its relative value operation:

                                                         Smooth skin        Seedling Skin           Total

A Unit sold                                            240000        \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     110000

selling price per unit                           \$ \ 3.10   \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \               \$ \ 5.10            

Sales value                                 \$ \ 744,000  \ \ \ \ \ \ \ \ \ \ \ \$ \ 561,000 \ \ \ \ \ \ \ \ \ \ \  \$ \ 1,305,000

Join its cost allocate(360000 \times \frac{sales\ value}{1305000}) 205,241 \ \ \ \ \ \     154,759  \ \ \ \ \ \    360,000

Smooth Skin is assigned the combined costs within each development process by way of the relative cost process                                        205,241

3 0
2 years ago
Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end invento
Genrish500 [490]

Answer:

inventory impairment/cost of good sold (p/l)   $500

Explanation:

IAS 2 requires that inventory be initially recognized at cost including cost of purchase and other necessary cost incurred in getting the inventory to the location where it becomes available for sale.

Subsequently, the item of inventory is carried at the lower of cost or net realizable value (NRV).

              Quantity    Unit Cost     Unit NRV      Lower of cost/NRV  Amount

Model A    100               $100              $ 120       $100                       $10,000

Model B      50                $50               $ 40        $40                         $2,000

Model C      20                $200             $210        $200                      $4,000

Adjustment required = 50 ($50 - $40)

=$500

This posted as

Debit inventory impairment/cost of good sold (p/l)   $500

Credit Inventory account                                              $500

5 0
3 years ago
You own a portfolio of two stocks, a and
Furkat [3]
Stock a is $2000. Calculate 10.5% of $2000, which equals $210.
Stock b is $3000. Calculate 14.7% of $3000, which is $441.

The expected return on the portfolio is $210 + $441, which equals $651. 
7 0
3 years ago
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
Masteriza [31]

Answer:

a. Journal entry to record music lesson

Date         Account title and Explanation     Debit     Credit

October   Cash                                              $12,500

                       Service revenue                                    $12,500

                (To record music lesson for cash)

b. Journal entry to record prepaid insurance purchase

Date         Account title and Explanation     Debit     Credit

October   Prepaid insurance                         $3,660

                       Cash                                                        $3,660

                 (To record  prepaid insurance paid for next year)

c. Journal entry to record musical equipment purchased

Date         Account title and Explanation     Debit     Credit

October    Equipment                                    $15,500

                        Cash                                                      $15,500

                  (To record musical equipment purchase for cash)

d. Journal entry to record

Date         Account title and Explanation     Debit     Credit

October    Cash                                              $21,000

                        Notes payable                                       $21,000

                  (To record loan taken by signing a note)

6 0
3 years ago
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