Business, 17.06.2021 16:00 gracelong4326

Suppose China exports TVs and uses the yuan as its currency while Russia exports vodka and uses the ruble. Suppose also that China has a stable money supply and slow, steady technological progress in TV production. Russia has very rapid growth in the money supply and no technological progress in vodka production. Based on this information, answer each part of the following two questions. a. We can predict that the real exchange rate (measured as bottles of vodka per TV) will This is because vodka will become than TVs in the future. b. The nominal exchange rate (measured as rubles per yuan) will This is because the monetary policies of the two countries will push the nominal exchange rate in as their differing technological trajectories will push the real exchange rate. a. ( decrease or increase) (Relatively more scarce or Relatively more abundant ) b. increass or he uncertain) ( The same direction or He opposite direction)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 14:50

The maximum amount of money that a consumer can charge on a credit card is called the

Answers: 2

Answer

Business, 22.06.2019 05:40

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Answers: 1

Answer

Business, 22.06.2019 19:40

You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (leave no cells blank - be certain to enter "0" wherever required. do not round intermediate calculations. enter your answers in millions.) a. what will profits be if sales turn out to be $1.5 million?

Answers: 3

Answer

Business, 22.06.2019 22:20

Which of the following is one disadvantage of renting a place to live compared to buying a home? a. tenants have to pay for all repairs to the building. b. the landlord covers the expenses of maintaining the property. c. residents can't alter their living space without permission. d. rent is generally more than monthly mortgage payments.

Answers: 1

Answer

You know the right answer?

Suppose China exports TVs and uses the yuan as its currency while Russia exports vodka and uses the...

Questions