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2 years ago

Suppose there was a large increase in net exports. if the fed wanted to stabilize output, it could?

Business

1 answer:

laila [671]2 years ago

3 0

If the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.

Given that there was a large increase in net exports.

We are required to advise the FED about the work he should do to stabilize the output.

The increase in exports shows that there had huge amount of money in the economy. So to stabilize the output FED has to decrease the output and to decrease the output FED has to decrease the money supply.

FED can decrease the money supply in various ways as under:

Increase in interest rate.
Selling of government securities.

There are many more ways to decrease the money supply. When the money supply decreases the people in the country may not be able to produce more goods and the production of goods decreases.

Hence if the FED want to stabilize output then FED has to decrease the money supply if the net exports were increased.

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David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of 12 restaurants and employs t

Harrizon [31]

Answer and Explanation:

The computation is shown below;

a) The In-house purchasing cost last year is

= Fixed costs + Variable costs

=$85,000 + Total number of purchase orders × cost per order

= $85,000 + 1400 × 15

= $106,000

The outsourcing cost is

Outsourcing cost = Fixed costs +Variable costs

= $100,000 + Total number of purchase orders × cost per order

= $100,000 + 1400 × 5

= $107,000

c) Total number of purchase orders = 1600

In-house purchasing cost = 85,000 + 1600 × $15 = $109000

Outsourcing cost = $100,000 + 1600 × $5 = $108000

Yes, David should outsource as the outsourcing cost is less than the in-house purchasing cost.

6 0

3 years ago

The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will

Triss [41]

Answer and Explanation:

Given that

The Sale is made for $900

Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days

Now the journal entry to record the receipts of a payment within discount period is

Cash Dr $882

Sales discount $18

To Account receivable $900

(Being the cash received)

3 0

3 years ago

The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales

Nostrana [21]

The contribution margin per unit sold by Violin Division of Stringing Music Co is <u>$326</u>.

<h3>What is the contribution margin per unit?</h3>

The contribution margin per unit is the difference between the selling price per unit and the total variable costs (production and selling) per unit.

<h3>Data and Calculations:</h3>

Monthly demand and sales = 200 units

Per-Unit Costs

<h3>Variable production costs: </h3>

Direct materials $170

Direct labor 155

Variable factory overhead 75

Fixed production costs:

Depreciation (equipment) 15

Factory rent 58

Other 15

Total production cost = $488

Variable selling = $24

Fixed selling & administrative costs = $36 per unit

Selling price per unit = $750

<h3>Total variable cost per unit:</h3>

Direct materials $170

Direct labor 155

Variable factory overhead 75

Variable selling 24

Total variable production and selling costs = $424

Selling price per unit = $750

Contribution margin per unit = $326 ($750 = $424)

Thus, the contribution margin per unit sold is <u>$326</u>.

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<h3>Question Completion:</h3>

Variable selling & administrative costs $24 per unit Fixed selling & administrative costs $36 per unit Given a normal selling price per unit of $750, what is the contribution margin per unit sold

4 0

2 years ago

If a country's saving rate increases, then in the long run a. productivity and real GDP per person are both higher. b. productiv

labwork [276]

Answer:

A) productivity and real GDP per person are both higher.

Explanation:

In the long run, an increase in savings will increase total investment. If total investment increases, then the productive capacity (productivity) and the aggregate supply should also increase. An increase in investment is the best way to guarantee a sustainable increase in aggregate demand without increasing the inflation rate.

When productivity increases, the real GDP per capita also increases.

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3 years ago

Sometimes bonds currently sell for ghs 1,150. they have a 6.75% annual coupon rate and a 15-year maturity and are callable in 6

ipn [44]

The rate of return should an investor expect to earn if he or she purchases these bonds is 4.81%

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

A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.

Annual Rate of Return: Definition and Calculation

For example, if an investment is worth $70 at the end of the year and was purchased for $60 at the start of the year, the annual rate of return is 16.66%.

A good return on investment is generally thought to be around 7% per year. Based on the historical average return of the S&P 500 after correcting for inflation, this is the barometer that many investors utilize.

(complete solution in attached image)

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1 year ago