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Vladimir79 [104]
3 years ago
7

Starting from a trade balance, if the world interest rate falls, then, holding other factors constant, in a small open economy t

he amount of domestic investment will _____ and net exports will _____.
Business
1 answer:
Sati [7]3 years ago
5 0

Answer:

domestic investment will <u>increase</u> and net exports will <u>decrease</u> .

Explanation:

Previously in trade balance, If world Interest falls : It becomes comparatively  lesser than relatively higher domestic interest rate. And makes domestic country a lucrative investment destination. This relatively higher domestic will lead to capital inflows & increase domestic investment.

When our currency is demanded more for capital inflows, its excess demand in foreign exchange market appreciates the currency & reduces exchange rate. At lower exchange rate & appreciated currency value, our exports become expensive & imports cheaper. This reduces exports & increases exports , hence reduces Net Exports.

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What can we interfere from the text text in pic
Anon25 [30]
Stop cheating jeez what a loser
7 0
3 years ago
The Parton Company has gathered the following information for a unit of its most popular product: Direct materials $ 20 Direct l
SVEN [57.7K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct materials $ 20

Direct labor 15

Overhead (60% variable) 20

Cost to manufacture $ 55

The above cost information is based on 10,000 units.

Parton currently sells 8,500 units for $62 per unit.

A distributor has offered to buy 1,000 units for $50 per unit.

We will have into account only the variable costs:

Unitary variable cost= 20 + 15 + (20*0.60)= 47

A) Increase in income= (50-47)*1000= $3,000

B) Regular units= 3000/(62 - 55)= 429 units

8 0
3 years ago
suppose ta hurricane hits alabama causing widespread damage to houses and businesses the governor of alabama places pirce cielin
Mamont248 [21]

Answer:

Shortages of building materials and a slower recovery from the storm

Explanation:

From the question we are informed about an instance, whereby a hurricane hits Alabama, causing widespread damage to houses and businesses. The governor of Alabama places price ceilings on all building materials to keep the prices reasonable. In this case,what most likely result is Shortages of building materials and a slower recovery from the storm.

From law of demand, which expressed that provided other factors remain equal, when price of a good goes higher, then there would be less demand of that good from

people and vice versa. higher price brings lower the quantity demanded, and lower price brings higher the quantity demanded, therefore in the case, above as the price of ceilings on all building materials so that price becomes reasonable people demand more and it leads to Shortages of building materials

6 0
3 years ago
1) Show the effect of the following transactions on the Accounting Equation:
Dennis_Churaev [7]

Answer:

Assets=48,000

Liabilities=47,700

Capital=300

More explanations is as attached.

Explanation:

The accounting equation can be expressed as shown;

A=L+C

where;

A=assets

L=liabilities

C=capital

This is then written as;

Assets=liabilities+capital

More explanations is as attached.

Download xlsx
6 0
3 years ago
Lance Lopes went to his bank to find out how long it will take for $1,300 to amount to $1,925 at 8% simple interest. Can you sol
Dennis_Churaev [7]

Answer:

It will take 6 years to generate an amount of 1,925

Explanation:

Amount - Principal = Interest

1,925 - 1,300 = 625 interest

Then we calcualte the interest

Principal \times rae \times time = Interest

We post our know values and sovle for time

1,300 x 0.08 x time = 625

625/(1,300x0.08) = time 6.0096 = 6 years

7 0
3 years ago
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