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Assoli18 [71]
3 years ago
7

F one U.S. dollar equals one euro, which of these could result if the euro experiences inflation?

Business
1 answer:
Alika [10]3 years ago
7 0

Answer: The correct option is C.

Explanation: Inflation is the measure of the rate at which the price level of goods and services increases over a period of time in an economy.

Inflation indicates the decrease in purchasing power of the currency of a nation.

Therefore if the euro experiences inflation, this would lead to a decrease in purchasing power of the currency. Hence, the more stable currency which is the dollar, that was initially equal to the euro, will now surpass the euro in value and purchasing power.

This will lead to the ability to procure more goods and services from the E.U. using the dollar.

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Omega Company has sales of $300,000 and cost of goods sold of $200,000. The cost of goods sold is a variable cost. The Company i
kiruha [24]

Answer:

A. the company's gross margin is $100,000, while its contribution margin is $60,000.

Explanation:

Under the gross margin, the net income would be

= Sales - cost of goods sold

= $300,000 - $200,000

= $100,000

Under the contribution margin, the net income would be

= Sales - cost of goods sold - variable operating expenses

= $300,000 - $200,000 - $40,000

= $60,000

Under the gross margin, no operating expenses would be considered whereas for contribution margin, only the variable operating expenses is considered

6 0
3 years ago
Suppose the reserve requirement is 5 percent. How much would reserves need to be initially increased to eventually increase the
Keith_Richards [23]

Answer:

$50

Explanation:

If the required reserves are 5%, then the money multiplier = 1 / 5% = 20. If the FED wants to increase the money supply by $1,000, then it needs to initially inject $1,000 / 20 = $50 into the economy.

When the FED wants to increase the money supply, it engages in an expansionary monetary policy. If it wants to decrease the money supply, then it will engage in a contractionary monetary policy.

7 0
4 years ago
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an
masya89 [10]

Answer: Option 3. Warehousing

Explanation: Warehousing can simply be defined as a situation whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market and furthermore, "warehousing" happens when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit.

5 0
3 years ago
What do we call goods produced to make other goods?
slega [8]

Answer:

consumer good or intermediate good

Explanation:

7 0
3 years ago
Read 2 more answers
Diamonds are generally marked up 100% from wholesale. If you offer a discount of 25% from the normal price on a diamond ring tha
alexandr402 [8]

Answer:

$412.5

Explanation:

First, we have to calculate the sale price of diamond at which i will be selling in normal circumstances

Normal selling price=Cost price+100%*Cost price

                               =275+100%*275

                               =$550

Now apply the discount rate of 25% to the normal selling price to caculate the actual offer price

Actual offer price=550*75%=$412.5

6 0
3 years ago
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