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1 year ago

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

1 answer:

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.

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Which of the following is not relevant when deciding whether or not to discontinue a product line?

FrozenT [24]

Answer:

Fixed costs that can be avoided by discontinuing the line.

Explanation:

Avoidable costs are those costs which can be eliminated by closing or rejecting a decision under evaluation. These costs are mostly variable coasts which vary with the change in activities. More activity more cost, less activity less cost and no activity no cost.

So fixed costs that can be avoidable by discontinuing the project is the only irrelevant cost between the given options.

6 0

3 years ago

6. Choose a good you are familiar with, and analyze its economic utility, using the questions below. NOTE: Choose a good for thi

xxTIMURxx [149]

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Explanation:

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3 years ago

What role does utility loading... play in the economic model of consumer behavior? when modeling consumer behavior, utility?

xenn [34]

Reflects the satisfaction a consumer receives from consuming a particular set of goods and services

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3 years ago

Last year leather boot, Inc. had investments in Paris worth 500,000 euros. At that time, the euro was worth $1.20. Today the eur

vitfil [10]

Answer:

Gain in USD = 50000

Gain or Loss in EUR = 0

Explanation:

given data

investments = 500,000 euros

before euro = $1.20

now euro = $1.30

to find out

gain or loss in value of the inventory expressed in dollars and in euros

solution

we get Gain or Loss in USD = Euro amount × current exchange rate - Euro amount × old exchange rate ..................1

put here value

Gain or Loss in USD = 500000 × 1.30 - 500000 × 1.20

gain = 50000

and

Gain or Loss in EUR = current euro amount - old euro amount .......2

put here value we get

Gain or Loss in EUR = 500000 - 500000 = 0

4 0

3 years ago

Porter's four generic strategies for achieving competitive advantage are: (A) cost leadership, product differentiation, cost foc

Elis [28]

Answer:

The correct option is: (A) cost leadership, product differentiation, cost focus, focused differentiation.

Explanation:

According to Michael Porter, the generic strategies that explains the process by which a company pursues a competitive advantage across its chosen market scope.

The three generic strategies used to achieve above average performance and competitive advantage are cost leadership, product differentiation, and focus. The two variants of the focus strategy are cost focus and focused differentiation.

Therefore, the four generic strategies are cost leadership, product differentiation, cost focus, focused differentiation.

3 0

3 years ago