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Oliga [24]
4 years ago
14

An increase in net exports causes GDP to increase. causes an increase in imports of the same size. can cause GDP to either incre

ase or decrease, depending on whether the exports are durable or nondurable. causes GDP to decrease.
Business
1 answer:
Delicious77 [7]4 years ago
3 0

Answer:

GDP to increase

Explanation:

Gross domestic product (GDP) refers to the total value of goods and services produced within the boundaries of a nation. Its component are consumption, investment, government expenditure and net exports.

GDP = Y = Consumption + Investment + Government expenditure + Net exports

Net exports refers to the difference of total value of exports and total value of imports.

Net exports = Exports - Imports

Therefore, if there is an increase in the net exports then as a result the GDP of a nation increases.

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Assume that a country is currently producing at a level of output equal to $600 billion. The government decides to increase expe
diamong [38]

Answer:

$725 billion

Explanation:

Given that,

Current level of output = $600 billion

Increase in government expenditure = $25 billion

Nation’s MPC = 0.8

Multiplier = 1 ÷ (1 - MPC)

                = 1 ÷ (1 - 0.8)

                = 5

Therefore, the nation’s new level of total output:

= Current level of output + (Change in government expenditure × Multiplier)

= $600 + ($25 × 5)

= $600 + $125

= $725 billion

4 0
3 years ago
A competitive firm has been selling its output for $10 per unit and has been maximizing its profit. Then, the price rises to $14
LenaWriter [7]

Answer:

The answer is 3. Quantity of output is higher that it was previously

Explanation:

A perfectly competitive firm acts as a price taker, so its calculation of total revenue is made by taking the given market price and multiplying it by the quantity of output that the firms chooses.

3 0
4 years ago
When you take out a mortgage your home becomes the collateral true or false?
spin [16.1K]

A mortgage is a long term loan issued by a financial institution such as; banks. These are loans obtained for a large sum of finance required. Example; an entrepreneur requires 60 million for expansion of the business. Therefore in such cases, a house is normally worth this amount and thus, a collateral security is given which is the house.

8 0
4 years ago
Read 2 more answers
A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.02 pe
LuckyWell [14K]

Answer:

$97,000      

Explanation:

Data provided in the question:

Receivable amount = 100,000 Canadian dollar

Premium per unit = $0.02

Exercise price of put option = $0.94

Spot rate at maturity = $0.99

Now,

Dollars received from selling Canadian dollars in the spot market

= Receivables amount  × Spot rate

= $100,000 × $0.99

= $99,000

Premium paid for options = Receivable amount  × Premium per unit

= $100,000 × $0.02

= $2000

Therefore,

The net amount received by the corporation if it acts rationally

= Dollars received from selling Canadian dollars - Premium paid

= $99,000 - $2000

= $97,000      

3 0
3 years ago
Management is considering a bonus system to increase production. One suggestion is to pay a bonus on the highest 5% of productio
Marina CMI [18]

Answer:

4099

Explanation:

we have mean = 4000

σ = 60 units

lets make X  = weekly production

z = X-μ/σ

z = X-4000/60

At 0.05 level of signficance, z critical value = 1.645

we put this value into the equation

z = \frac{x-4000}{60} \\1.645 = \frac{x-4000}{60}

we cross multiply from here

60 * 1.645 = x - 4000

98.7 = x-4000

x = 4000 + 98.7

x = 4098.7

≈ 4099

the bonus would be paid on 4099 units

7 0
3 years ago
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