The correct answer to the given question is that the trade deficit would increase since with the appreciating pound means <em>more goods will be imported</em> from New Zealand.
Based on the given question, we are asked to show the effects of the trade deficit between New Zealand and UK based on the appreciation of the pound sterling relative to the New Zealand dollar.
With this in mind, we are aware that when there is a strong domestic currency, then it would encourage more imports and hamper exports, therefore, the trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.
Therefore, the correct answer is option D
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Answer:
$ 50.625
Explanation:
Amount of deposit = $50
interest 5 percent usually per year
Per year interest rate = 5/100= 0.05
Interest rate for 3 months= 0.05/12 x3
=0.0125
Interest amount =0.0125 x50= 0.625
Money in the account will be
=$50+0.625
=$ 50.625
Answer: Bullwhip Effect
Explanation:
The Bullwhip Effect occurs as a result of changes in the original information about the demand of a product as the information passes across the supply chain.
In the Bullwhip Effect small changes at the customers end of the supply chain leads to large variation in the manufacturing end of the chain.
Answer:
$606,375
Explanation:
The computation of the amount of cash payments to stockholders is shown below:
= Beginning dividend payable + cash dividend declared - ending dividend payable
= $167,625 + $585,000 - $146,250
= $606,375
We simply added the dividend declared amount and deducted the ending dividend payable to the beginning dividend payable so that the accurate amount can come.
Answer:
$120 billion
Explanation:
Economy operating at $300 billion above its natural level of output.
Marginal propensity to consume, MPC = 3/5 = 0.6
For closing this expansionary gap, the government have to decrease its spending by the amount calculated as follows:
Spending multiplier:
= 1/ (1 - MPC)
= 1/ (1 - 0.6)
= 1/ 0.4
= 2.5
Hence, the government spending reduces by
= Expansionary gap ÷ Spending multiplier
= $300 ÷ 2.5
= $120 billion
