If the total production exceeds the total expenditures this means that there are more goods are produced than the demand of each households. Thus, this will lead to an increase of inventory. Then this will signal the manufacturing firm that they have overproduced the goods which will lead to cut back the production. This leads to lesser prices and/or unsold goods alongside with the likelihood of unemployment. Therefore the answer is d.
Answer:
The account that includes transactions like imports and exports, income earned by Americans abroad, and net transfers to other countries.
Explanation:
A current account can be defined as an account that record the different transactions a country carries out with another country. A current account comprises of net primary income, earnings from foreign investors that have occurred within a particular period of time.
Almost all countries are involved in trading of goods and services with another country, a current account helps to evaluate the manner in which a particular country traded their different goods with foreign markets.There tends to be a postive balance of a country exports more goods than it imports.
Answer:
1.60 percent
Explanation:
exact real rate of return on this investment = interest rate - inflation rate
total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863
total money invested = 500 × $ 62.30 = $ 31150
her profit = $ 32863 - $ 31150 = $ 1713
interest = $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %
exact interest rate = 5.4992 % - 3.9% = 1.5992 approx 1.60 percent
Answer:
Ceteris paribus assumption: Demand curves relate the prices and quantities demanded assuming no other factors change
Explanation:
Ceteris paribus is a Latin phrase meaning “other things being equal”. If all else is not held equal, then the laws of supply and demand will not necessarily hold.
Demand is the amount of some product a consumer is willing and able to purchase at each price.
IMPACT THE SUBSTITUTION EFFECT AND THE REAL INCOME
A substitute is a good or service that can be used in place of another good or service. A lower price for a substitute decreases demand for the other product and increases the quantity demanded for tomatoes
A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.
