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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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Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest paym
tatyana61 [14]

Answer: Incomplete question.

the complete queston is

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2020.

b) The first interest payment on June 30, 2021.

(c) The second interest payment on December 31, 2021.

find answer in explanation column.

Explanation:

Semiannual Period-End Unamortized Discount Carrying Value

(0) January 1,  issuance            $13,466               $ 186,534

(1) June 30, first payment          11,782                188,218

(2) December 31, second payment 10,098             189,902

1. to record issue of bonds payable

Date  Account                         Debit             Credit

Dec 31,2020 Cash(carrying value) $ 186,534  

Discount on bonds payable              $13,466    

Bonds payable                                             $200,000

2. To record first interest payment

Date        Account                         Debit             Credit

june 30, 2021 Interest expense     $7,684

discount on bonds payable                               $1, 684

Cash                                                                $6,000

Calculation =

Cash paid towards interest every semi annual period = $200,000 X 6% X1/2 =$6,000.

interest expense = cash paid + discount on bonds payable written off.

                           = $6000 + $1, 684  = $7,684

discount on bonds payable = unamortised discount on 31 dec - unamortised discount on 30th june) ($13,466 -11,782 ==$1,684)  

3.To record second interest payment on december 31,2021.

 Date        Account                         Debit             Credit

Dec. 31 ,2021 Interest expense         $7,684  

 discount on bonds payable                                $1.684

                          Cash                                          $6,000

Calculation

discount on bonds payable = unamortised discount on 30th june - unamortised discount on 31st december 2021 =11,782-10,098 = $1.684

8 0
3 years ago
Hormel offers its food distributors a discount of 15 percent for payment within 10 days on orders of all Jiffy brand products. H
Feliz [49]

Hormel is giving its customers a cash discount.

<h3>What is cash discount?</h3>

Cash discount is the discount a seller give to a buyer by reducing the amount the buyer was supposed to pay because the buyer make his payment earlier.

Based on the given scenario Hormel offers is offering its  food distributors a discount of 15 percent if the distributor paid within the stipulated time or period of  10 days.

Inconclusion Hormel is giving its customers a cash discount.

Learn more about cash discount here:brainly.com/question/14883253

4 0
2 years ago
Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol
erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0
3 years ago
A customer in a coffee shop purchases a blend of two coffees: kenyan, costing $3.50 a pound, and sri lankan, costing $5.60 a pou
Rom4ik [11]
We have to make a system of equations:
x + y = 7;  where x stays for pounds of Kenyan coffee, and y stays for pounds of Sri Lankan coffee. And: 3.50 * x + 5.60 * y = 33.95 ( total cost ).
From the 1st equation: x = 7 - y. We have to substitute it into the 2nd equation:
3.50 * ( 7 - y ) + 5.60 * y = 33.95
24.50 - 3.50 y + 5.60 y = 33.95
5.60 y - 3.50 y = 33.95 - 24.50
2.10 y = 9.45
y = 9.45 : 2.10
y = 4.5 lb;  x = 7 - 4.5 = 2.5 lb.
Answer: 2.5 lb of Kenyan coffee and 4.5 lb of Sri Lankan.
7 0
3 years ago
The amount of something that is produced compared to the resources taken to product it is called _________.
Mariulka [41]
The answer is efficiency
3 0
3 years ago
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