Answer:
1. The government could not finance it's deficit budget.
2. The Dollar was stable and Through dollar adoption, interest rate would be lowered and investments would increase.
Explanation:
The colon was changed to dollars because El Salvador wanted a boost in it's economy through the US Dollar.
Printing money to finance deficit would no longer be done by the government and inflation would be brought under control. Because of the adoption El Salvador has no control over it's monetary policy.
the government would still be able to run deficits by printing money
with dollars, shocks caused by demand in the economy will be offset more effectively by using monetary policy.
By printing U.S. dollars, the government would still be able to finance deficits.
Answer:
Debited by $400
Explanation:
Calculation for the Cost of Goods Sold
Using this formula
Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)
Let plug in the formula
Cost of Goods Sold=200 units * ($12 - $10)
Cost of Goods Sold= 200 units*2
Cost of Goods Sold = $400 Debited
Therefore the Cost of Goods Sold will be:$400 Debited
It is called Cyberchondria
Answer:
$3.25
Explanation:
The new price for cigarettes will be the intersection point between the demand curves and the new supply curve.
Assuming S1 is the old supply curve without taxes and the new supply curve is S2 with taxes. The new price is the intersection of S2 and the demand curve, which is at $3.25.
Answer: West Mudville should specialize in, and export, baseball bats.
Explanation:
Each country should specialize in the good that it has a lower opportunity cost in producing.
West Mudville
Opportunity cost of producing baseball bats = 9/9 = 1 baseball
Opportunity cost of producing baseball = 9/9 = 1 baseball bat
East Mudville
Opportunity cost of producing baseball bats = 8/4 = 2 baseballs
Opportunity cost of producing baseball = 4/8 = 0.5 baseball bats
From the above, West Mudville has a lower opportunity cost than East Mudville in the production of baseball bats and so it should specialize in and export that.
