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poizon [28]
3 years ago
7

What role does savings play in the process of economic growth

Business
1 answer:
matrenka [14]3 years ago
6 0

Answer:

The role played by banks in the economic growth is that savings promote the generation of loans, and generate funds to new businesses.

Explanation:

Banks use the funds on the savings accounts to generate credits to other clients that might be persons or companies.

Suppose that you have $1000 dollars saved in your bank account. Then, your bank only needs to keep a deposit of the 10% from the $1000. This means to save $100 and use the rest $900 to generate credits to other customers.

The $900 remaining will be loan to individuals or companies to finance new  projects such as: Buying a car, house, invest in machinery or re design a branch from a cloth store.  

These projects boost economic growth as they move the economy with consumption, and investment.

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The market size and market growth rates in the foreign market can be influenced negatively by:______.A. population sizes, income
Nikitich [7]

Answer:

A. population sizes, income levels and cultural influences, the current state of the infrastructure and distribution and retail networks available.

Explanation:

The reason is that the foreign markets are affected by the cultural differences for example if US clothing brand enters Suadia Arabia then it can not sell its brands here because in the Suadia Arabian culture girls wear full sleeves and are not skin tight fits. This means that the culture have an influence over the foreign markets. Likewise the income level tells about how much the customer can spend on luxury items, population of customers available is also an attractive part that the investors see to move in the markets. The infrastructure of a country and the regional importance of the state are also the motivators for the foreign companies to move in to the market.

These factors are the ecosystem of the country that gives insight of the market size and market growth of a particular market.

8 0
3 years ago
Property taxes on a company's factory building would be classified as a(n):
BigorU [14]
<span>Property taxes on a company's factory building would be classified as "manufacturing cost".
</span>

Manufacturing cost refers to the sum of expenses of all assets expended during the time spent making an item, these costs are normally separated from other everyday expenditure in order to measure the effectiveness and production of the company. Direct materials cost, direct labor cost and manufacturing overhead are the three classes of manufacturing cost.
4 0
3 years ago
2) Economic Growth: Use the PPF from above to illustrate the effects of saving and investment upon national GDP. Use a PPF to sh
Inessa [10]

Answer and Explanation:

Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts  a raise in productive capacity of an economy.  An outward shift implies that an economy has capacity to  increase its production outputs. This can be as a result of   the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.

Effects of saving and investment upon national GDP

level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able  to lend more to firms to support their investments.

low savings and investment implies a PPF inward shift. low savings  in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.

spending  on consumer goods vs capital goods effect on the economy

In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost  the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.

6 0
3 years ago
Real per capita gross domestic product (GDP) is higher in the United States than in Bangladesh. Based on that, we could predict
Vinil7 [7]

Answer:

b. adult literacy; infant mortality

Explanation:

Multiple choice <em>"life expectancy; internet usage ; adult literacy; infant mortality ; infant mortality; adult literacy ; access to clean water; life expectancy"</em>

<em />

Higher real GDP per capita would imply higher literacy rate and at the same time lower infant mortality as citizens would invest more in health and education. All the other options are wrong as higher real GDP per capita cannot lead to lower life expectancy or literacy rate.

4 0
3 years ago
Sales revenue for a sporting goods store amounted to $528,000 for the current period. All sales are on account and are subject t
weqwewe [10]

Answer:

The answer is A. A debit to Accounts Receivable for $ 586,080

Explanation:

Sales tax is an additional amount of money one pays based on a percentage of the selling price of goods and services that are purchased.

The sales tax amount will be added to sales revenue to form the total bill.

Sales revenue ----------------- $528,00

Sales tax -------------------------- 11%

Sales tax amount

$528,00 x 0.11

= $58,080

Therefore, total bill is:

$528,00 + $58,080

=$586,080.

Debit increases an asset(accounts receivable) while credit decreases an asset(accounts receivable).

Since the accounts receivable will increase, it will be on debit side.

8 0
3 years ago
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