Answer: An increase in government spending
Explanation:
Currency appreciation is an increase in the worth of one currency against the value of another currency. Due to the appreciation of a currency, imports get cheaper.
In a small open economy, the appreciation of the real exchange rate can be caused by an increase in government spending as this puts pressure on domestic currency to appreciate, which leads to current account deterioration.
If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.
<h3>What is a monopolistic competition?</h3>
A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants
A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.
Here are the options:
A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.
OC. they will wish to cooperate to make decisions about what quantity to produce.
O D. they will be unable to earn higher-than-normal profits in the long run.
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Answer:
d. All of these answer choices are correct.
Explanation:
Is important to match the expenses with the revenues they are related. If for tax purposes we can deduct a full equipment value in one year. This means we are goung to pay higher income taxes in the future as we don't have the depreciation expense available for taxes porpuses.
The use of deferred incoem tax will be useful to knwo how much are the actual cash obligation and the expected value of the future cash obligations
Answer:
False
Explanation:
Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually do not beat the market in the next time period.
Answer:
WACC 8.53600%
Explanation:
The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.
And the wight of the dbet times the cost of financing after the tax shield.
Ke 0.11000
Equity weight 0.65
Kd 0.06
Debt Weight 0.35
t 0.34
WACC 8.53600%