Answer:
Less government spending will make the currency value of the small country to fall compared to other currencies, because less government spending means less printing of money, and a slower growth of the money means less inflation, and a cheaper currency.
This will make the exports of the small open economy attractive, leading to an increase in this component of aggregate demand. Such scenario will result in a rise of real income in the short run.
Answer:
$1,500
Explanation:
Given that,
Sales = $9,000
Operating costs = $6,000
Depreciation = $1,500
Interest rate = 7%
Federal-plus-state income tax rate = 40%
Operating income or EBIT:
= Sales - Operating costs - Depreciation
= $9,000 - $6,000 - $1,500
= $1,500
Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.
Answer:
Break-even point= 600 units
Explanation:
Giving the following information:
The selling price per dozen is $20, variable costs are $14 per dozen, and total fixed costs are $3600.
The break-even point in units is the number of units required to cover for the fixed costs. We need to use the following formula to calculate it:
Break-even point= fixed costs/ contribution margin
Break-even point= 3,600/ (20 - 14)= 600 units
The annual percentage rate on a credit card determines how much extra you will pay when you buy things on the card.
