Answer: Option (a) is correct.
Explanation:
Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.
If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.
The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.
If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.
So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.
This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.
Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.
Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.
Answer:
A
Explanation:
IPO , a synonym for initial public offering is a process of offering to the public new stock issuance through an underwriter.
IPO comes with a lot of benefit , nevertheless financial economist have some concern about it .
Of all the options given in the question , the long run of a new public company , (three to five years from the date of issue) being superior to the overall market returns is the only exception
Have less information than used car sellers
Answer:
The Cost of Goods Sold or COGS for the period was $85000
Explanation:
The cost of goods sold is the value or cost of inventory that has been sold off during the period. The Cost of Goods Sold of COGS can be calculated as follows,
COGS = Opening Inventory + Purchases - Closing Inventory
COGS = 50000 + 75000 - 40000
COGS = $85000
So, the Cost of Goods Sold or COGS for the period was $85000
Answer:
See below
Explanation:
Computation of net cash provided by operating activities using the indirect method
Cash flow from operating activities
Net income
$2,700,000
Adjustments to reconcile net income
Add: Decrease in accounts receivable
$357,400
Less: Decrease in accounts payable
$296,500
Add: Depreciation expense for the year
$162,300
Net cash provided by operating activities
$2,923,200
