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denpristay [2]
3 years ago
12

If the domestic interest rate in a small open economy with perfect capital mobility is higher than the world interest rate, then

______ would drive the domestic interest rate back to the level of the world interest rate. the government capital inflow capital outflow a decline in domestic saving
Business
1 answer:
Karolina [17]3 years ago
6 0

Answer: capital inflow

Explanation:

Capital flows is the movement of money for investment purpose, trade or business production, and it includes the flow of capital in corporations in the form of investment capital and capital spending on research development and operations.

On a larger scale, the government directs capital flows from tax into operations and programs and through trade with other countries and currencies. When the domestic interest rate in an open economy which is small with perfect capital mobility is greater than the world interest rate, the domestic interest rate would be driven back to the world interest level by the capital inflow.

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Answer:

2.7

Explanation:

The inventory turnover is defined as the ratio between the cost of merchandise sold during the year and the average inventory.

Average inventory can be defined as the mean between initial and ending inventory. The inventory turnover is:

IT=\frac{\$270,000}{\frac{\$110,000+\$90,000}{2} } \\IT=2.7

The inventory turnover ratio is 2.7.

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Explanation:

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Answer: True

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8 0
3 years ago
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Explanation:

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