Answer:
d. encourages both U.S. and foreign residents to buy U.S. assets.
Explanation:
The interest rate in a country has influence on the capital of it.
When the real interest rates in the United States increase, the U.S. assets have higher value so that become attractive to funds. Thus, it encourages both foreign and U.S. residents to buy U.S. assets.
Besides, when the real interest rate in the U.S. increases, it encourages the U.S residents to save more U.S. assets and discourage them from purchasing foreign assets
=> The net capital inflow in U.S would increase
Answer:
Sin taxes are typically added to liquor, cigarettes, and goods that are considered morally hazardous. Because they generate enormous revenue, state governments favor sin taxes. ... The sin tax seeks to reduce or eliminate consumption of harmful products by making them more expensive to obtain
Explanation:
The form of financial exchange Erik uses is B. currency.
Answer:
Contribution per unit is $30 while contribution margin ratio is 40%
Explanation:
The contribution margin ration is derived with the below formula:
contribution margin ratio=margin/sales price
Margin=selling price-variable cost
Margin=$75-$45
Margin=$30
Contribution margin ratio=$30/$75
Contribution margin ration=40%
The contribution determines the to which the company can recover its fixed costs as well as make profits.
The contribution margin ratio shows margin as a percentage of sales price.A contribution margin ratio of 40% implies that variable cost is 60% of selling price,hence the balance of 40% is available to settle fixed costs and profit
