Which of the following explains why an increase in the domestic price level (for given exchange
rate) educes net exports in an economy where there is foreign trade? As the price level increases,
due to the increase in the ratio of domestic prices to foreign prices, exports decrease, and as a
result net exports decreases. As the price level increases, due to the resulting increase in
exchange rates, exports decrease and as a result net exports decreases. As the price level
increases, the purchasing power of people increases and they feel wealthier. Therefore, this
economy imports more from abroad. The increase in the price level, must be because of excess
demand for goods and services. So, the government has to import more goods and services to
remove the upward pressure on prices..
Which of the following investment options will maximize your.pdf
1. Which of the following investment options will maximize your future wealth at the end of 19 years?
Assume any funds that remain invested will earn a nominal rate of 13% compounded monthly. (a)
Deposit $5,300 now. (b) Deposit $95 at the end of each month for the first 11 years. (c) Deposit
$75 at the end of each month for 19 years. (d) Deposit a lump sum in the amount of $10,600 at the
end of year 11. (a) If you deposit $5,300 now your future wealth at the end of 19 years will be $.
(Round to the nearest dollar.)
