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ad-work [718]
1 year ago
6

If the united states experiences lower personal savings rates, then it must be the case that?

Business
1 answer:
Arada [10]1 year ago
8 0

If the united states experiences lower personal savings rates, then it must be the case that any increase in domestic investment must be financed by foreign funds.

Because consumer spending accounts for roughly 70% of the US economy, even a small reduction in consumer spending can reduce aggregate demand and economic activity. A falling saving rate, on the other hand, may result in temporarily faster economic growth as people spend a larger portion of their earnings on goods and services.

National savings in the United States have fallen in recent decades as a result of lower private savings rates and higher federal budget deficits. A low national savings rate is especially troubling given the large number of workers retiring now or soon in the United States. With fewer workers able to save and more people drawing down those savings as retirees, government budget deficits are likely to rise further. This reduces the national savings rate even further, harming future economic growth and living standards. Due to low saving rate the US needs to borrow foreign funds for domestic investment.

Learn more about saving & investment here:

brainly.com/question/13371101

#SPJ4

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Silway travels organizes tours to a number of cities in illinois. the manager of the company examines a spreadsheet which is an
Andrei [34K]

The answer to the blank space is data.

The contents of the spreadsheet are the annual record of airfares to different cities from Chicago. This is what we call data – which are facts or statistics collected together for reference or analysis. Since Silway Travels plans to use the annual record information to contrast airfares during peak and off-season, it is clear that the data in this case would be used for analysis.

6 0
3 years ago
Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p
Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

Next, calculate the rate of return  using Net operating cashflow per year and the equipment cost. You can do this with a financial calculator;

N =5

PMT = 150,000

FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0
3 years ago
At the year-end, Encore Company has a product for inventory that was purchased at a cost of $23. The product's expected selling
allsm [11]

Answer:

$21

Explanation:

As we know that

The inventory should be recorded in the books of accounts by applying the lower value of cost or net realizable value

In the given case

The cost is $23

And, the net realizable value is

= Expected selling price - selling cost

= $36 - $15

= $21

So by comparing the cost and net realizable value, the net realizable value contains the lower value i.e $21 and the same is recorded on the balance sheet for inventory

6 0
2 years ago
Me and my friend started a babysitting business in June. and so far we only got one job. Are we doing anything wrong? do people
BartSMP [9]
Maybe they need to gain more trust
3 0
2 years ago
Read 2 more answers
Speedy Runner makes running shoes and they have gathered the following data for the month of​ October: Data Cash on​ 10/1 Expect
dmitriy555 [2]

Answer: $9,000

Explanation:

Speedy Runner will need to borrow the amount of cash disbursements that will exceed their cash receipts.

= Opening Cash + Cash Receipts - Cash Disbursements

= Opening Cash + Expected Cash Collections - Direct Labor Cash - Direct Materials Cash Disbursements - Operating Expenses Cash Disbursements - MOH Cash Disbursements - Capital Expenditures Cash Disbursements ​- Ending cash balance requirement

= 15,300 + 435,000 - 32,000 - 80,000 - 110,000 - 25,000 - 200,000 - 12,000

= $8,700

<em>They can borrow in incremental terms of $1,000 so to cover the cash requirements they should borrow </em><em>$9,000. </em>

8 0
3 years ago
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