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jeka94
4 years ago
10

A country's current national savings and investment identity is expressed in algebraic terms as I – S – (T – G) = (M – X). Assum

e that the level of domestic investment in a country rises, while the level of private and public saving remains unchanged. In this instance, the rise in domestic: investment will mean:__________
Business
1 answer:
pentagon [3]4 years ago
4 0

Answer:

Increase in current account deficit.

Explanation:

If a country's total net savings e.g. total of government and private savings are less than the total domestic investment so this deficit must be financed by foreign capital in the form of borrowing. Foreign borrowing results in capital account surplus ultimately increasing trade deficit.

High rate of domestic investment while no change in savings results in or increase in current account deficit. The main reason is that low private or government savings as compared to private investment in domestic capital requires foreign investment.

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A small clothing firm currently produces 50,000 shirts and blouses per month. the costs of its factory, raw materials, and labor are $500,000 per month. if the company is to increase production by 5,000 and that requires additional labor and raw material expense of $100,000, what is the best estimate of costs of the increased production is $100,000.

Most people think you'll make a kajillion dollars and be well on your way to overnight stardom. But the reality is that the profit margins on clothing are notoriously low. According to industry analysts, you're looking at 4-13% profit margins. That means for every $100 you invest, you get $104-$113 back.

Production is the process of making or manufacturing goods and products from raw materials or components. In other words, production takes inputs and uses them to create an output that is fit for the consumption of a good or product that has value to an end-user or customer.

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