Answer:
The answer is: B) In Boravia when the economy is strong, those who might otherwise go camping tend to take vacations overseas.
Explanation:
Usually a sustained economic growth would lead to an increase in the sales of high quality products. Hill and Dale sell high quality expensive products, so the only thing that could hurt their sales is that people don't go camping anymore. The only option that could lead to lower demand is that Boravia's economy is doing so well that its citizens can now afford to travel to other countries instead of camping.
Answer: Option B
Explanation: In simple words, spending multiplier refers to the effect that the spending from the govt have on an economy. As per this effect, if the govt. spends a little on the economy the multiplier effect will come into force and make a major impact on the organisation.
Government spending refers to the total outflow of resources made by the govt. for the betterment of economy. However the decrease in tax will not directly be considered an outflow but it surely does increase their revenue leading to more demand in the economy.
Hence from the above we can conclude that the correct option is B .
Answer:
d.Expenses for travel as a form of education are not deductible.
Explanation:
Expenses in the nature of travel, are not allowed while the travel might be for the purpose of education.
This is because it is not in the nature of direct expense.
As the expense for the purpose of business which are important for the business to pursue in a more positive manner is preferable and essential for the business.
As extra education and knowledge provide excellence to perform the task for which knowledge is acquired.
Answer: the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America.
Explanation:
Trade deficit is a situation whereby the expenses incurred is more than the revenue gotten.
One of the consequences of the U.S. trade deficit is that the accumulation of American dollars in foreign hands has enabled foreign firms to build factories in America.
