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svetoff [14.1K]
3 years ago
7

. What happens when the domestic interest rate is lower than foreign interest rates?Foreign investment shift domestically

Business
1 answer:
Sidana [21]3 years ago
4 0

Answer:

Lower domestic interest rates should help to boost the economy, by increasing lending and investment. It also should depreciate the currency of the country, increasing exports and decreasing imports. This temporary depreciation of the currency should be offset in the short run, as more exports will eventually result in an appreciation. Foreign direct investment should also increase (at least temporarily) due to cheaper currency.

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Zola borrows $1000. To repay the amount, she makes 12 equal monthly payments of $95. Compounding is done monthly. Determine nomi
Verdich [7]

Answer:

Effective monthly rate 2.076%

Yearly nominal rate: 24,912%

Explanation:

In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.

This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

95 \times \frac{1-(1+r)^{-10} }{rate} = 1000\\

we write on A1

=RATE(12;1000;-95)

and we will receive 2.076% as answer

<em><u>Now to convert into nominal:</u></em>

2.076 x 12 = 24,912%

4 0
4 years ago
A small italian grocery store sells five varieties of feta cheese. it offers bulgarian, french, danish, greek, and one that is p
Shkiper50 [21]
<span>Domestic products are generally cheaper due to lower shipping cost and few to no additional tariffs are levied on those goods. A side note: Since 2002 in the EU 'Feta' has had a protected designated origin; meaning that only cheese produced in a particular way from particular regions of Greece can be labeled for sale as 'feta.'</span>
6 0
3 years ago
How might the career of someone who joins several professional organizations differ from the career of someone who doesn’t join
umka2103 [35]

Offmind's Explanation:

Within these Chefs ability to cook, the one who is associated to the professional organizations might have a better knowledge on how to use various things and apply them to their food but the one without the professional organizations helping them could still be learning, just not from a specific organization. Still though, the question asks us how it would affect their careers. While one chef has involvement with various professional organizations, they could find themselves with better opportunities in their future while the other one might not get those same opportunities due to their lack of association with such organizations. Both, might have the same skills in the end but, most times the one with the more professional experience will have more open doors.


If you found this answer helpful please be sure to mark it Brainliest...

Thanks!

-<em>Offmind</em>

5 0
2 years ago
A nation's central bank auctions off a new issue of 10-year bonds. What is the short-run effect on the nation's economy
sdas [7]

Answer: Aggregate Demand Decreases

Explanation:

When the Central Bank sells bonds, it is engaging in Open Market Operations to reduce the amount of money in the Economy by taking money out of people's hands ( the money they will use to buy the bonds).

When money supply in the economy decreases, it will have the opposite effect on Interest rates as they will increase because money is no longer readily available.

When this happens both businesses and Individuals will reduce the amount of money they borrow for investment and consumption respectively which are both components of Aggregate Demand.

Aggregate Demand therefore decreases and the AD curve shifts to the LEFT to depict this.

6 0
3 years ago
Item7 Time Remaining 15 minutes 14 seconds00:15:14 Item 7 Time Remaining 15 minutes 14 seconds00:15:14 If __________ is the cons
Vladimir79 [104]

If capacity is the constraint, we should raise the staffing level to raise capacity.

<h3>What is the relation between capacity and level of staff?</h3>

Capacity planning can be difficult for businesses of any size. It necessitates a careful balancing act between real-time staff availability, budgetary resources, and job demands from clients, partners, or other stakeholders.

When demand outpaces supply and the flow rate is equal to the processing capacity, capacity is limited. A factor that hinders a corporation from producing more is capacity limitation.

If capacity is limited, we should increase staffing to free up more space.

I understand the question you are looking for is this:

If __________ is the constraint, we should __________ the staffing level to raise capacity.

a. demand, lower

b. demand, raise

c. capacity, raise

d. capacity, lower

Learn more about capacity limitation here:

brainly.com/question/9312392

#SPJ4

8 0
2 years ago
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