Corporate financing comes ultimately from savings by households and foreign investors.
Option b
<u>
Explanation:
</u>
The respective government will formulate the corporate financing policy according to the economic need of the country. The economic policies will also device the rules and regulations for the corporate financing either in the way of banking institution or by foreign investment.
Corporate financing done by the banking institution will have the contribution from savings of households and another type of funding is foreign investment which is carried out by joint venture agreement. This way the country’s economy will mainly depends on corporate financing.
Answer:
C. A country can specialize in producing that for which it has a comparative advantage and then trade for other needed goods and services.
Explanation:
<em>Comparative advantage</em> is simply evaluating the opportunity cost of other benefits or costs, if the country is opting to choose for a specific category of goods for production purposes.
For example, let's say US can produce 20 Television (TV) sets and 50 Air Conditioners in a month. Here, the opportunity cost of producing 1 TV set is 50/20 i.e. 2.5 Air Conditioners. Similarly, the opportunity cost of producing 1 Air Conditioner (AC) is 20/50 i.e. 0.4 TV set. Hence, US should produce Air Conditioners over TV sets as per <em>Comparative Advantage</em> concept.
Take another example, let's say UK can produce 50 Television (TV) sets and 20 Air Conditioners in a month. Hence, the opportunity cost of producing 1 TV set is 20/50 i.e. 0.4 Air Conditioner. On the other hand, the opportunity cost of producing 1 AC is 50/20 i.e. 2.5 TV sets. Thus, UK should produce TV sets over AC's as per <em>Comparative Advantage </em>model.
Hence, US should export AC's to UK and import TV sets from UK to gain from specialization and trade.
<em> In this way nations can gain from specialization and trade by making use of Comparative Advantage theory</em>.
It is to be noted that <em>Absolute Advantage model </em>of Adam Smith is also good as it highlights production of that good by a country, which it can produce in large quantities with fewer resources and minimal time than any other nation in the world. But the <em>Comparative Advantage Model </em>developed by David Ricardo considers opportunity cost and is much more refined than Absolute Advantage Model.
<em></em>
If the Fed wishes to ensure that inflation does not get out of hand, the Fed could lower the <em>target money supply growth rate</em>.
Inflation is when the general price levels in an economy increases persistently overtime. The policy tools that the Fed can use to control general price levels in the economy is known as monetary policy.
There are two types of monetary policy :
- Expansionary monetary policy : these are steps taken by the Fed to increase the supply of money in the economy. These steps include reducing the <em>target Funds rate, decreasing the reserve requirements and carrying out open market purchase</em>.
- Contractionary monetary policy : these are steps taken to reduce the money supply in the economy. These steps include reducing the <em>target money supply growth rate and carrying out an open market sales. </em>
To learn more about monetary policy, please check: brainly.com/question/15566475?referrer=searchResults
Answer:
The given approach would be "Proxy indicators".
Explanation:
- A proxy indicator would be a parameter that often used substitute throughout that would be harder to quantify individually.
- This would be an ambiguous indication of either estimate which may well approximate or otherwise be indicative of such an occurrence or without the existence of either a specific measurement.
So really the answer above would be appropriate.
