Answer:
demand for pesos would fall and supply would rise. their value would decrease as a result
Explanation:
Inflation is a persistent rise in general price level.
When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.
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The true statement is <em>D. When </em><em>BCA</em><em> is negative, it implies that government </em><em>budget deficits</em><em> and/or part of </em><em>domestic investment </em><em>are being financed with </em><em>foreign-controlled capital</em><em>.</em>
The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.
Explanation:
National income = Y = GNP
Consumption = C
Private Investment = I
Government spending = G
Exports = X
Imports = M
Taxes = T
Therefore, the BCA = X-M = (S-1) + (T – G)
Where BCA = Balance of Current Account
Thus, the Balance of the Current Account (BCA) should be <u>positive</u> to avoid deficit-financing of government budgets.
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Answer:
$3,208
Explanation:
The computation of the future value is shown below;
As we know that
Future valie = Present value × (1 + rate of interest)^number of years
where
Present value is $2,500
Rate of interest = 2.5% ÷ 4 = 0.625%
And, the time period is = 10 × 4 = 40
So, the future value is
= $2,500 × (1 + 0.625%)^40
= $3,208