Answer:
international value of the dollar increases
import increases
export decreases
Explanation:
Monetary policy are policies taken by the central bank of a country to shift aggregate demand.
There are two types of monetary policy :
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy
Goals of monetary policy include
• financial market stability
• economic growth
• high employment
• price stability
When there is a contractionary monetary policy, interest rate increases. this leads to the appreciation of the US dollar against other currencies. thus, the exchange rate increases.
Due to the increased value of the dollar, the purchasing power of the dollar increases. As a result, import increases.
Due to increase in the value of the dollar, US goods become more expensive for non-US people. As a result, export decreases.
Answer:
They are forces of production and social relations of production.
Explanation:
In Marxism and historical materialism the forces of production are a central idea. In the own critique of political economy by Karl Marx and Frederick Engels, it refers to the combination of the means of labor with human labor power.
forces of production is a term used in political economy that refers to the physical means and production techniques to which laborers add value and transform capital into saleable products.
By " relations of production," Marx and Engels meant the total sum of social relationships that people have to enter to survive, produce, and reproduce their means of living...relations can be social ties, economic relationships, or technological relationships.
Answer:
The answer is 20
Explanation:
The money multiplier show us how an initial deposit can lead to a higher final increase in the total money supply or it relates to the maximum amount of bank money that can be created, given a certain amount of money from central bank money.
Money multplier = 1 / reserve requirement
Reserve requirement is 5% of the deposits
Therefore, money multiplier is
1 / 0.05
20
Answer:
4.82%
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
77 = 5.37 / (0.118 - g)
77(0.118 - g) =5.37
(0.118 - g) = 5.37 / 77
(0.118 - g) = 0.069740
g = 0.118 - 0.069740
g = 0.04826
g = 4.82%