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Romashka [77]
1 year ago
11

In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment,

then there will be a trade ______ and ______ net capital outflow. a. surplus; negative b. deficit; positive c. surplus; positive d. deficit; negative
Business
1 answer:
marysya [2.9K]1 year ago
6 0

There will be a trade surplus and positive net capital outflow.

There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. Exports will exceed imports, resulting in a trade surplus.

<h2>What are the characteristics of an open economy?</h2>
  • Its economy is reliant since it depends on other nations for both imports and exports.
  • International alterations have an impact on it.
<h2>What is a trade surplus?</h2>
  • There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. export surplus A trade surplus is an economic indicator indicating a favorable trade balance where a nation's exports are more than its imports.
  • When the outcome of the computation above is positive, there is a trade surplus. A trade surplus is the result of a net local money inflow from international markets. because exports will exceed imports.

Learn more about trade surplus and trade deficit  :

brainly.com/question/17717899?referrer=searchResults

#SPJ4

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Kari is on a trip to italy. she has made a list of cities she would like to tour while she is there, as well as how much she exp
stealth61 [152]

Based on the amount budgeted and the cost of sight seeing, kari has almost exactly enough left in her budget to see genoa.

<h3>Which city should Kari see?</h3>

Exchange rate is the rate at which one currency is exchanged for another currency. In ths question, 1 dollar is exchange for 0.6859 euros.

  • The first step is to convert the amount budgeted to Euros: 585 x 0.6859 =  401.25
  • Cost in Euro of seeing Naples : 0.6859 x 71.06 = £48.74
  • Cost in Euro of seeing Venice : 0.6859 x 113.38 = £77.77
  • Total cost of the sightseeing =  £48.74 + £77.77 + £68.77+ £95.41 + £49.69  + £60.85 = £401.25

To learn more about exchange rate, please check: brainly.com/question/13717814

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Eric's Used Book Store prepares its financial statements in accordance with IFRS. Inventory was purchased for €6 million and lat
andrew-mc [135]

Answer:

€6 million

Explanation:

As we know that

According to the International Financial Reporting Standards, if the net realizable value of the inventory increases then the written down of reversal value is required

And according to the GAAP, the inventory should be valued at lower of cost or net realizable value

So in the given case, the inventory is purchased at €6 million and now it is estimated value is  €7 million so the lower value i.e €6 million should be reported on the balance sheet.

4 0
3 years ago
In constructing a common-size income statement, depreciation will be______. A. omitted since it is a noncash expense. B. express
Naddika [18.5K]

Answer:

B. expressed as a percentage of sales.

Explanation:

The common size income statement is the income statement where n each line the item on the income statement should be expressed as a percentage of sales

In the given options, the option B is correct as it shows that the depreciation would be expressed in sales percentage

Therefore all other options are wrong

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