A senator renounces his past support for protectionism: "The U.S. trade deficit must be reduced, but import quotas only annoy ou
r trading partners. If we subsidize U.S. exports instead, we can reduce the deficit by increasing our competitiveness."
Show the effect of an export subsidy on the market for foreign exchange.
The value of dollars in the market for foreign-currency exchange.....falls or rise.... as a result of this export subsidy.
True or False: The export subsidy reduces the trade deficit.
Show the effect of an export subsidy on the market for foreign exchange.
The value of dollars in the market for foreign-currency exchange.....falls or rise.... as a result of this export subsidy.
True or False: The export subsidy reduces the trade deficit.
1 answer:
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Answer:
$240,909
Explanation:
Given:
Number of common stocks issued = 10,000
Value of common stock = $5
Fair value per share = $25
Number of shares of $15 par value = 15,000
preferred stock having a fair value of $20 per share = $530,000
Total market value of the stocks = 10,000 × $25 + 15,000 × 20 = $550,000
Now,
The proceeds that would be allocated to the common stock will be
=
=
= $240,909