The best answer to fill in the blank would be A).
Answer:
The current account deficit will increase from 1% to 31% of GDP.
Explanation:
National saving and investment identity helps in understanding the determinants of trade and current account balance. The current account is in balance when the quantity demanded of financial capital is equal to the quantity supplied of financial capital.
Here, the government saving or surplus and private savings are the supply of financial capital and investment indicates demand for financial capital.
The current account balance is
= Supply of capital - Demand for capital
= (30 + 2)% - 33%
= 32% - 33%
= -1%
So the current account is in deficit by 1% of GDP.
If the private savings becomes zero, the current account balance will be
= Supply of capital - Demand for capital
= 2% - 33%
= -31%
The current account will be in deficit by 31%.
Are we suposed to fill in the blank??
Answer:
True
Explanation:
The dividends to be recognized are always for the amount they are given in cash, but in case of property dividends, the dividends are to be recognized at fair value of the property distributed.
This is in accordance with GAAP.
There is no recognition based on book value or carrying value of the property distributed as do not represent the net exchange value of the property.
Therefore, the statement is TRUE
Answer:
6
Explanation:
The Insurance Institute for Highway Safety (IIHS) is known to be an independent body or organization. It is a nonprofit scientific and educational organization solely aimed to reducuction of the losses and deaths, injuries and property damage as a result from motor vehicle crashes. In US, due to front or rear crashes cost more than 6 billion dollars a year is being spent on injury.
