Answer:
Answer for the question:
Consider a two-period model of a small open economy with a single good each period. Let preferences of the representative household be described by the utility functionln(C1) + ln(C2),where C1 and C2 denote consumption in periods 1 and 2, respectively, and ln denotes the natural logarithm. In period 1, the household receives an endowment of Q1 = 5. In period 2, the household receives profits, denoted by ?2, from the firms it owns. Households and firms have access to financial markets where they can borrow or lend at the interest rate r1. (r1 is the interest rate on assets held between periods 1 and 2.).Representative firm borrows D1f in period 1 to make investment I1 that enable the firm to produce goods in period 2. The production technology in period 2 is given byQ2 = ?(I1),where Q2 and I1 denote, respectively, output in period 2 and investment in period 1.Assume that there exists free international capital mobility and that the world interest rate, r*, is 10% per period (i.e., r* = 0.1). Finally, assume that the economy’s initial net foreign asset position is zero (B0* = 0)c) Find the country’s net foreign asset position at the end of period 1, the trade balance in periods 1 and 2, and the current account in periods 1 and 2.d) Now consider an investment surge. Specifically, assume that as a result of a technological improvement, the production technology becomes Q2 = 2?(I1). Find the profit maximizing level of investment made in period-1 and the level of profit for period-2. Find the equilibrium levels of saving, the trade balance, the current account, and the country’s net foreign asset position in period 1.
Is given in the attachment.
Explanation:
Answer:
The correct option is C
Explanation:
Cold site is one of the kind of the location of the business, which is usually worn or used for the proceeding of disaster as a backup while in the disruptive operational in the normal site of the business.
In short, it is stated as an office for the sites which needed or required backup because it have the required equipment, which will resume or direct the operations. But there is problem that it does not happen always or regularly.
So, the one which is a cost site that is very low is the cold site as it does not support the requirements of the quicker recovery.
Answer:
The correct answer is: decrease in demand.
Explanation:
The equilibrium price and quantity are determined through the intersection of demand and supply curves.
An increase in demand will cause the demand curve to move to the right. This will cause both the price level as well as quantity to increase.
A decrease in supply will cause the supply curve to shift to the left. This will cause the price to increase and quantity to decline.
A decrease in the demand curve will cause the demand curve to shift to the left. This will cause the price as well as quantity to decline.
The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.
<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
- Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
- When a central bank employs an expansionary monetary policy, it helps to boost the economy. This boosts the availability of money, brings down interest rates, and raises demand. It promotes economic expansion. It reduces the currency's worth, which decreases the exchange rate.
- The following are the general effects of monetary policy on economic activity, as measured by changes in (real) interest rates. Financial institutions can obtain funds at cheap interest rates when interest rates fall. They are able to lower their lending rates for loans to businesses and households as a result.
- Expansive monetary policy can be quite successful in the early stages of a financial and economic collapse, reducing uncertainty spikes and tail risks and preventing negative feedback loops (e.g. Mishkin 2009).
What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?
The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.
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The total amount of social insurance taxes you owe the federal government is $3,596.
The social insurance taxes will be tax rate (6.2%) of gross income amount of $58,000 which is calculated using this formula
Social insurance taxes=Social security tax rate× Gross income
Where:
Social security tax rate=6.2%
Gross income=$58,000
Let plug in the formula
Social insurance tax=6.2%×$58,000
Social insurance tax=$3,596
Inconclusion the total amount of social insurance taxes you owe the federal government is $3,596.
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