No, 6ft=72in. There the same.
Answer:
Explanation:
Given that:
a)
1$ = Can $1.12
It takes a value of 1 U.S dollar to have 1.12 Canadian dollars. This signifies that the U.S dollar is worth more than Canadian dollars.
b)
Assuming that the absolute Purchasing Power Parity PPP holds,
Since 1$ = Can $1.12, the cost in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:
= 
= $2.545
c)
Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.
This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.
d)
The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.
e)
Canada has higher interest rates. This determined by using the formula:
= 
where; n= numbers of years = 6 month/12 month = 0.5 year
Then;



= 0.0356
= 3.56%
Answer:
D. -4/5
Explanation:
Given that
Wage rate = $20 per hour
Cost of capital = $25 per hour
Recall that,
Slope of isocost = -(w/r)
Where,
W = wage rate
r = rental cost of capital.
Thus,
Slope of isocost curve
= -(20/25)
= -0.8 or -4/5
Note that, the negative of the ratio is the price of the two inputs. Also isocost is a line showing the various combinations of inputs which cost the same amount.
Answer:
C
Explanation:
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. If the government offers a per unit subsidy on rain barrels equal to the per-unit externality, then the after-subsidy equilibrium quantity of rain barrels will be more than the socially optimal quantity of rain barrels.