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How would you describe the savings rate in america compared with other industrialized countries?

United States’ savings rate is only around 10%, much lower than any other countries. There's some reasoning behind it. In fact, countries with the highest savings rates weren’t necessarily the countries with the highest GDPs. GDP os US is $56,300 per capita but their household savings rate of just 4.9%. Also, in Hungary their GDP is $26,000 while their savings rate of 9.0%. This implies that the money they have isn't place on one nest only or put to savings, rather allocated to a much more important sectors. We should not forget taking into account their purchasing power parity, the rate a currency would have to be converted into another to buy the same amount of goods and services of the country.

6 0

3 years ago

If a firm increases its use of capital while holding constant the number of workers employed, the firm is said to experience:

stich3 [128]

Answer:

It is capital deepening (D)

Explanation:

Capital deepening typically represents an increase in the capital-labor ratio. This arises when there is infusion of additional capital(e.g technological improvement) into the production processes while work force is either kept constant or cut-down and thereby makes labor to be more productive.

Hence, as the capital-labor ratio increases, the marginal product of labor, i.e. the amount of product that can be produced by supplying one more unit of labor, increases because there are now more units of capital per worker.

8 0

4 years ago

If the Federal Reserve wants to lower the interest rate to 4 percent, it must _____ the money supply to _____.

d1i1m1o1n [39]

If the Federal Reserve wants to lower the interest rate to 4 percent, it must increase the money supply to lower interest rates.

<h3>Why the federal reserve wants to prevent a recession?</h3>

If the federal reserve wants to prevent a recession which means an economic condition when GDP falls or economy faces a low or negative economic growth.

Thus, first of all aggregate demand should increased to boost up the economy and money supply should increase to lower the interest rate then business will take more loans at lower rate and invest more in production to meet up the aggregate demand and increasing employment opportunities.

Learn more about federal reserve, refer to the link:

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4 0

2 years ago

Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6 comma 000. Alternately, the manufacturer cou

Diano4ka-milaya [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A manufacturer can produce a part for $8.00 with a fixed cost of $6,000.

A supplier in Asia offers the part for $10.00, which includes transportation.

The anticipated production volume is 1,300 units.

First, we need to calculate the total cost of making the part in-house. We will calculate based on two situations:

Fixed costs are avoidable

Total cost= variable cost + fixed costs= 8*1,300 + 6,000= 16,400

Fixed costs are unavoidable:

Total cost= total variable cost= 8*1,300= $10,400

Now, we calculate the total cost of purchasing:

Purchase= 10*1,300= $13,000

Based on this information, the purchase is more convenient if at least $3,400 of the fixed costs are avoidable.

7 0

3 years ago

Information for the Deuce Manufacturing Company follows. Compute the cost of goods manufactured for this company. Beginning raw

Ierofanga [76]

Answer:

cost of goods manufactured= $440,300

Explanation:

First, we need to determine the direct material used in production:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 53,200 + 210,000 - 58,100

Direct material used= $205,100

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 78,400 + 205,100 + 149,800 + 105,000 - 98,000

cost of goods manufactured= $440,300

7 0

3 years ago