Low interest rates impact our balance of trade

Assignment Help Business Economics
Reference no: EM131098313

The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade? Explain your answers.

Reference no: EM131098313

Questions Cloud

Health insurance-high-risk and low-risk consumers : Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year. If a..
Who encodes message in the communication process : The individual who encodes a message in the communication process is also most likely to be which of the following:
Suppose that the demand for olive oil is highly inelastic : Suppose that the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, you would expect a _____________ in the pric..
Several celebrated investors-stock picker frequently mentiod : Several celebrated investors and stock pickers frequently mentioned in the financial press have recorded huge returns on their investments over the past two decades. Does the success of these particular investors invalid the EMH? Explain
Low interest rates impact our balance of trade : The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?
Requuired annual rate of return on the investment is nearest : A permanent scholarship fund is started through a donation of $750,000. If scholarships totalling $100,000 are awarded each year beginning five years from now, the requuired annual rate of return on the investment is nearest to:
Equal semi-annual cash flow in the equivalent series : A series of quarterly cash flows began with the first cash flow on April 1,1990 and ends with the last cash flow on January 1,2000. The first quarterly cash flow is equal to $24,000. Each successive cash flow increases $850. The series of quarterly c..
Compute present value of stream of profits for three year : A market is characterized by a demand curve that can be expressed as P = 400 – 5 Q. Each of the firms currently serving the market has a total cost function of the form C = 50 q. There are no fixed costs. compute the present value of a stream of prof..
An individual is considering the purchase of used automobile : An individual is considering the purchase of a used automobile. The total price is $6200 with $1240 as a down payment and the balance to be paid in 48 equal monthly payments with interest of 12% compounded monthly. The payments are due at the end of ..

Reviews

Write a Review

Business Economics Questions & Answers

  Determine the optimal monthly sales volume for this product

A large wood products company is negotiating a contract to sell plywood overseas. The fixed cost that can be allocated to the production of the plywood is $800,000 per month. The variable cost per thousand board feet is $155.50. For this situation, d..

  Qa decade ago five firms supplied amateur color film in the

q.a decade ago five firms supplied amateur color film in the united states kodak fuji konica agfa and 3m. from a

  What happened to real GDP between years

Assume that in year 1 an economy produces 1000 units of output and they sell for $100 a unit, on average. In year 2, the economy produces the same 1000 units of output, and sells it for $110 a unit, on average. Use year 1 prices to calculate real GDP..

  Marginal cost and average total cost

The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the Demand (D) curve is the same as the MR curve for such a firm. Assume that the ..

  Explain rational expectations

Explain rational expectations in your own words. Using the rational expectations model is the U.S. stock market efficient? Why or Why not?

  Characteristic of command system

Which of the follow is a characteristic of a command system?

  Soccer balls are selling in purely competitive market

Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average ..

  Manage wine cellar with fixed storage space

Suppose you manage a wine cellar with fixed storage space and you have to choose when to sell each bottle of wine. The value of each bottle V(t) is increasing over time at a decreasing rate: V' (t) > 0 and V'' (t)

  Calculate the optimal number of trips to the bank

Suppose the nominal interest rate is i = 10%, the time cost of a round trip to the bank is $25 and annual expenditure is $72,000. If a consumer makes N trips to the bank how much interest do they give up during the period? What is the total time cost..

  The assumption of the perfectly competitive model

The assumption of the perfectly competitive model is that products sold by all retailers are completely identical. Under this assumption, as we've seen in this analysis, competition between retailers is extremely fierce.

  Advice to politicians

David Crockett intended "Advice to Politicians" to be humor but it illustrated the truth that people must be motivated to come out and vote. Andrew Jackson's "Bank Bill Veto" also motivated voters but used a different method. What was it about Jackso..

  How do you recover an investment

How do you recover an investment when the residual value is significantly less than the loan value.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd