The correct option is (d); reduce national saving and lead to a trade deficit.
<h3>What is trade deficit?</h3>
When a nation purchases more than it exports, a trade deficit results. Although very big deficits can hurt the economy, a trade deficit is neither fundamentally fully positive nor harmful.
Some key features of trade deficit are-
- When a nation purchases more than it exports, a trade deficit results.
- A nation with a trade deficit, also referred to as a negative trade balance, has spent more money than it has made in its foreign trade with other nations.
- The amount of imports and exports a nation makes can affect that nation's GDP, currency value, rate of inflation, and interest rates. The amount of imports and the size of the trade deficit can both hurt a nation's currency.
- A trade imbalance results when domestic consumers purchase more foreign goods than domestic manufacturers sell to overseas consumers, which lowers GDP.
- The trade deficit can be improved by consume less and save more.
To know more about the causes of the trade deficit, here
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Answer:
$5,490
Explanation:
Computation for the equivalent units for conversion costs
To complete beginning work in process inventory 360
[400*(1-10%)]
Units started and completed 4,500 (4,900-400)
Ending work in process inventory 630 (900*70%)
Equivalent units for Conversion costs $5,490 units
Therefore the equivalent units for conversion costs is $5,490
No you can not afford it
1600•0.25= 400
1600-400=1200
1200-1200=0
Answer:
There is no market failure in this case, since Candace knew about the Yugonero's multiple mechanical issues and she also knew that it didn't offer any type of warranty, plus she had read several press releases detailing the problems related with the Yugonero. She just decided to take the chance of buying one of the few Yugoneros that were built properly and operated without any problems. She probably paid much less for the Yugonero and that was probably her main motivation.
Explanation: