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.
Increasing your 401k deduction will LOWER/DECREASE your take-home pay and LOWER/DECREASE your federal taxes in the current year.
401k is a specific amount of money that will be deducted from your initial pay so it could be allocated to your pension account.
When 401k deduction increased, it will take a bigger chunk on your salary, so your take-home pay will be reduced. The amount of 401k deduction is considered as pre-tax, so it would not be counted in federal tax.
Answer:
Number of units to be sold= 6,093
Explanation:
Giving the following information:
Selling price= $120
Unitary variable cost= $52.8
Fixed cost= $396,480
Desired profit= $13,000
<u>To calculate the number of units to obtain the desired profit, we need to use the following formula:</u>
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (396,480 + 13,000) / (120 - 52.8)
Break-even point in units= 6,093.4 = 6,093
Answer:
The correct answer is A.true.
Explanation:
Fixed asset accounting systems include cost allocation and matching procedures that are not part of routine expenditure systems.
As per financial accounting standards fixed assets cost is capitalized and than depreciated over its useful life. Only that amount of asset cost is charged in profit and loss account that has been depreciated during the reporting period. However, in case of other routine expenses full amount is charged in p/l, in the period, in which these costs are incurred.
