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iren [92.7K]
3 years ago
9

A drawback to using changes in domestic credit to adjust the domestic money supply to maintain a peg: A) is problems in emerging

market economies as a result of bond market instability.B) is the lack of expertise in financial matters in the central banks of emerging markets. C) is the requirement that currencies flip flop from fixed to floating. D) is that nations are ignoring a potentially more effective source of currency adjustment.
Business
1 answer:
natita [175]3 years ago
5 0

Answer: The most correct Option is option A) is problems in emerging market economies as a result of bond market instability.

Explanation: The question explains why it has been difficult for a nation to control the value of it's money, so as to achieve a fixed exchange rate with other currencies. This is because the bond market is not stable. This bond market is what the central bank uses to control the flow of money into the economy, to avoid depreciation or inflation of the economy. Because the market is not stable due to the rate of bond demand is not stable. This will make it difficult for the central bank to keep a fixed rate of MPR (monetary policy rate) and loans.

Even though all the options are related to the issue, but option A. is directly linked to the question. This can be seen by someone, that the central banks are having brain drain, because it is one of the major issue all central banks are facing. It can also be seen as a reason why money fluctuate. It can also be seen that nation's has ignored to Source more form of regulating money. But due to the fact that bond market instability is the major problem leading to all this. Option A. still remains the answer.

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blagie [28]

Through price collusion, each firm would achieve higher profits.

When competing businesses agree to cooperate, such as by raising prices in order to increase profits, this is called collusion. Collusion is a strategy used by businesses to increase profits at the expense of customers and lowers market competition.

Lower consumer surplus, higher prices, and more profits for the colluding businesses are the results of collusion. It may enable oligopolists to exercise monopoly power and increase their group earnings. In an oligopoly, businesses have a strong incentive to work together.

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6 0
2 years ago
The City of Crescent Hill operates a central motor pool as an internal service fund for the benefit of the city's other funds an
aliya0001 [1]

Answer:

C. Expenditures

Explanation:

Based on the information provided within the question it can be said that the Parks Department should use an expenditures account to record these billings. Expenditures refers to the action of spending funds to purchase goods or services on behalf of the company. Such purchases can include vehicle rentals like what was billed for the Parks Department.

4 0
3 years ago
Suppose Alphonso’s town raised the price of bus tickets to $1 per trip (while the price of burgers stayed at $2 and his budget r
solong [7]

Answer:

(attached graph)

The increase in the ticket price makes the budget line slope to decrease. There will be less ticket available for Alphonso.

The increase in the bus tickets makes the opportunity cost of the hamburger to decrease as now, consuming an hamburger will make Alphonso renounce to a lesser amount of bus tickets. As the the opportunity cost is the goods or services we don't consume in favor for those we do.

Explanation:

4 0
3 years ago
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 milli
laiz [17]

Answer:

a)

MACRS 3 year depreciation schedule

33.33% x $2,300,000 = $766,590

44.45% x $2,300,000 = $1,022,350

14.81% x $2,300,000 = $340,630

carrying value at end of year 3 = $170,430

net after tax cash flow from salvage value = $210,000 - [($210,000 - $170,430) x 22%] = $201,294.60

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year 1 = [($1,720,000 - $628,000 - $766,590) x 0.78] + $766,590 = $1,020,410

year 2 = [($1,720,000 - $628,000 - $1,022,350) x 0.78] + $1,022,350 = $1,076,677

year 3 = [($1,720,000 - $628,000 - $340,630) x 0.78] + $340,630 + $201,294.60 + $270,000 = $1,397,993

b)

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6 0
3 years ago
PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
nlexa [21]

Answer:

A

Explanation:

8 0
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