Answer: 6; 9
Explanation:
The real exchange rate would be calculated as:
= (Nominal exchange rate × cost of basket in the United States) / cost of basket in China
a. Real exchange rate = (7.00 × 90) / 105
= 6
b. Real exchange rate = (10.50 × 90) / 105
= 9
The decision that must the government of a country make and choose between increasing military spending and subsidizing wheat farmers is an example of <span>a guns or butter issue.
</span>The phrase "guns or butter" refers and explains the relationship between two goods that are important for a nation's economic growth. I<span>ncreasing military spending and subsidizing wheat farmers are both important.</span>
Answer:
NPV = $29,794.60
Explanation:
Year Cash Flow
0 -$55,000
1 $28,000
2 $26,000
3 $26,000
4 $31,000
5 $12,000
NPV = -$55,000 + ($28,000 x 0.8696) + ($26,000 x 0.7561) + ($26,000 x 0.6575) + ($31,000 x 0.5718) + ($12,000 x 0.4972) = -$55,000 + $24,348.80 + $19,658.60 + $17,095 + $17,725.80 + $5,966.40 = -$55,000 + $84,794.60 = $29,794.60
Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
Your study partner is correct that the distinction between government’s budget deficit and debt is similar to the distinction between consumer savings and wealth.
Savings and deficits are actions that take place over time, they dont happen overnight . When any government is spending more than it receives in tax revenue in a particular time period, this governmemt will be running a budget deficit. On the other hand, when consumers spend less than their disposable income in a particular time period, they are saving.
However, both debt and wealth are measured at one point in time. When the government runs a budget deficit, the deficit is almost always financed by borrowing, which adds to its debt. This is also Similar to consumers who accumulate wealth by saving.
We can also say that your study partner is wrong in that the government can run a large budget deficit and have a small debt if it hasn’t run large deficits in the past.
Explanation:
See answer for the detailed explaination