In a traditional economy decisions are based largely on

The fundamental relationship between savings and investment spending in an economy is that: A. savings will increase as investme

Romashka-Z-Leto [24]

The correct option is B

Explanation:

In an economy, planned investment spending is always equal to planned saving. If actual saving falls short of (exceeds) planned saving, then actual investment falls short of (exceeds) planned investment.

That is the other part of the saving paradox. If an economy produces too much, such that saving is greater than planned investment, inventory will build up, giving signal to producers to reduce output, to restore equilibrium. Such investment scheme is suitable only to communist countries. Keynes has another investment theory in his liquidity story. But investment theories are equally a posterior.

Therefore, Option B is correct

8 0

3 years ago

The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the origin

Anit [1.1K]

Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.

This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date

6 0

3 years ago

What are the four segments in a PEST analysis?

makvit [3.9K]

Political, economic, social and technological

5 0

3 years ago

Phillip Witt, president of Witt Input Devices, wishes to create a portfolio of local suppliers for his new line of keyboards.

kirill115 [55]

Answer:

Based on the EMV value, the best choice is to use Two suppliers

Explanation:

Is necessary to consider different amount of suppliers and evaluate the cost. We will choose the number of suppliers which offers a lower cost.

EMV1 = cost of shutdown*super event risk + cost of shutdown*unique event risk + cost of managing supplier = 480000*.02 + 480000*0.05+16000 = 9600 + 24000 + 16000 = $ 49600

EMV2 = cost of shutdown*super event risk + cost of shutdown*unique event risk of each supplier*unique event risk of each supplier + cost of managing 2 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 1200 + 16000*2 = $ 42800

EMV3 = cost of shutdown*super event risk + cost of managing 3 suppliers = 480000*.02 + 480000*0.05*.05+16000*2 = 9600 + 16000*3 = $ 57600

Based on the EMV value, the best choice is to use Two suppliers

6 0

3 years ago

Malmedy Corporation uses the FIFO method in its process costing system. The following data pertain to operations in the first pr

klasskru [66]

Answer:

beginning WIP 800

Question: which are the physical units in the beginning work in process inventory?

Explanation:

The beginning WIP and the started and completed untis will be the total transferred units.

We first, solve for the start and completed:

Unit Stated 25,200

Ending WIP(incomplete) 2,000

start and complete 23,200

Now, we solve for the WIP:

Transferred units 24,000

start and complete (23,200)

beginning WIP 800

7 0

3 years ago