All categories

2 years ago

This assignment requires the application of your understanding of how the federal budget deficit affects economic variables.

1 answer:

7 0

The impact of a federal budget deficit on interest rates and the trade balance is that it can bring about the inflow of foreign financial capital as well as a better exchange rate.

<h3>How can budget deficit have effect on trade balance?</h3>

When there is a stronger exchange rate there will be a little bit difficult for all the exporters that want to sell their goods to foreign countries, and at this time the imports will become cheaper.

In this case, trade deficit will definitely bring about an inflow of foreign financial capital as well as a good exchange rate.

Learn more about budget deficit on:

brainly.com/question/1083134

#SPJ1

You might be interested in

On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $40,000 in cash and giving a short-term n

Norma-Jean [14]

Answer:

See below

Explanation:

The cost of land to be included in the balance sheet would not only include the price paid to acquire the land but also include cost or revenue received in the process while also include all activities required to bring the land to the stage in which it may be ready for usage.

With regards to the foregoing, the cost of land to be included in the balance is is

= Cash paid + short term note + legal fee + delinquent taxes + Fees paid to remove old building from the land - sales of materials salvaged from demolition of the building

= $40,000 + $306,000 + $1,665 + $13,100 + $22,500 - $5,200

= $378,065

Therefore, cost of land to be included in the balance sheet is $378,065

3 0

3 years ago

Explain the four characteristics of a mineral?

vivado [14]

The 4 Major characteristics of a mineral are:
1. It is formed by natural processes, not man-made.
2. It is inorganic, it's not alive, it will never be.
3. It is a crystalline solid, a definite volume and shape with a repeating structure.
4. It can be an element or compound with a definite chemical composition, made the same each time with and orderly arrangement of atoms.

3 0

3 years ago

Read 2 more answers

Insulorinc. is expecting cash flows of $67,000 at the end of each year for the next five years. if the firm's discount rate is 1

arsen [322]

<span>Answer: $214,356.19 Explanation: Present value of Annuity = P[(1-(1+r)^-n)/r] = 67000(1-(1+0.17)^-5/0.17) = 214,356.19</span>

8 0

3 years ago

although stocks can generate greater revenue, they are also more risky than many forms of investments. true or false

34kurt

The correct answer for the question that is being presented above is this one: "TRUE." Although stocks can generate greater revenue, they are also more risky than many forms of investment. Dividends are not guaranteed; each company's board of directors has to vote to issue dividends, and they may not always do so.

4 0

3 years ago

Read 2 more answers

You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1, $1,000

jeyben [28]

The rate of return I would earn if you bought the asset is 16.91.

<h3>What is the internal rate of return?</h3>

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested. It is a capital budgeting method.

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-5250
Cash flow in year 1 = $750
Cash flow in year 2 = $1000
Cash flow in year 3 = $850
Cash flow in year 4 = $6250

IRR = 16.91%

To learn more about the internal rate of return, please check: brainly.com/question/24172627

8 0

3 years ago