1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zimovet [89]
3 years ago
9

A United States-based faculty member goes on sabbatical and works in Finland for a government-run university teaching classes fo

r its International MBA program. The faculty member returns to the U.S. with a paycheck for $50,000 and spends $38,000 of it on a German manufactured car from a dealership in Miami, Florida. Using the classic expenditure model, how much does the GDP increase in each country?
A) $38,000
B) $50,000
C) $0
Business
1 answer:
vodomira [7]3 years ago
8 0

Answer:

A $38,000- Germany:  B $50,000- Finland: C $0 , America

Explanation:

GDP represents the total value of all the goods and services produced within the country. The expenditure method is one of the methods that economist use in calculating the value of GDP.  Expenditure refers to spending. In measuring the GDP, the expenditure method takes account of expenditure on all the output of a country. Economists add up the values of finals goods and services produced within the borders of a country and multiply them by their prices. The result is the nominal GDP.

The formula for calculating GDP is as follows

GDP equals consumer spending on goods and services plus investor spending on business capital goods plus government spending on public goods and services plus net exports​

In Germany, GDP will increase by $38,000. It is the value of the car produced in Germany. In the formula, it is part of the net exports for the country.

In Finland, the GDP will increase by $50,000. It is the value of services offered by the American while working in Finland. In Calculating GDP, all output within the country is considered regardless of the person who produced it.

In the USA, the GDP will increase by 0$. The car was bought in the US, but it was an import. The expenditure formula does not consider imports. The amount of $50,000 was not earned within the borders of the US.

You might be interested in
When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and the
Alekssandra [29.7K]

Managers are involved in controlling when they conclude that an organization is not making adequate progress toward reaching its goals and objectives and develop remedial actions.

  • Control is a management activity that aids in the detection of problems and the implementation of corrective actions. This is done to reduce deviation from standards and guarantee that the organization's overall goals are met as desired.
  • Controlling is the process of assessing an organization ’s objectives toward its objectives. It comprises monitoring the implementation of a strategy and correcting errors from that plan.
  • Control management is a process that helps your firm spot problems, make adjustments, and keep project management on track. Control management increases your firm's chances of achieving its goals.
  • Controlling is one of the most important management duties of a goal-oriented organization. Management control approaches are classified into two types: modern and classic control strategies. Feedforward, feedback, and concurrent controls are examples of management control techniques.

Thus the correct answer is controlling.

To learn more about controlling, refer: brainly.com/question/28109846

#SPJ4

7 0
1 year ago
When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional managemen
Ksivusya [100]

Answer:

When an investor adds international stocks to his or her U.S. stock portfolio, a. he or she needs to seek professional management because he or she doesn't have access to international investments on his or her own. b. it will have no impact on either the risk or the return of his or her portfolio. c. he or she will increase his or her expected return but must also take on more risk. d. he or she can reduce the risk of his or her portfolio. e. it will raise his or her risk relative to the risk he or she would face just holding U.S. stocks.

3 0
2 years ago
Suppose you transfer $500 from your checking account to your savings account. With this transaction, M1 _________ and M2________
Luba_88 [7]
Decreased; stayed the same
4 0
2 years ago
Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equi
Reil [10]

Answer:

9.73%

Explanation:

the market value of equity = 10,000,000 stocks x $15 = $150,000,000

the market value of debt = 40,000 bonds x $1,150 = $46,000,000

total = $196,000,000

weight of equity = 0.7653

weight of debt = 0.2347

Re = 3.5% + [1.35 x (0.115 - 0.055)] = 0.035 + 0.081 = 0.116

cost of debt = ytm = {36.25 + [(1,000 - 1,150)/40]} /  [(1,000 + 1,150)/2] = (36.25 - 3.75) / 1,075 = 32.50 / 1,075 = 0.03023 x 2 = 0.0605

after tax cost of debt = 0.0605 x (1 - 40%) = 0.0363

WACC = (0.116 x 0.7653) + (0.0363 x 0.2347) = 0.09729 = 9.73%

3 0
3 years ago
Carrie attends Grant University. She works 22 hours each week at Freight Unlimited and makes $12 per hour. How much money will s
Goryan [66]

The answer is 4,752 :)

hope it helps!

7 0
3 years ago
Other questions:
  • Which of the following statements is not a difference between business markets and consumer​ markets?A. Buyers face more compl
    11·1 answer
  • Which of the following do you think would lead to an increase in the current demand for beef?
    12·1 answer
  • When was the word integer introduced?
    9·1 answer
  • Which of the following is NOT an example of the technical support that the International Monetary Fund (IMF) provides to governm
    15·1 answer
  • To pursue a career in business information management, you need a degree or certification in_____information system,or an
    8·1 answer
  • In a _____ situation, the buying center is likely to proceed through all six steps in the buying process and involve many people
    9·1 answer
  • Marle Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021, with a performanc
    7·1 answer
  • Scott Company has 5 sales employees, each of whom earns $16,000 per month and is paid on the last working day of the month. Each
    6·1 answer
  • 14. Over a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this in
    6·1 answer
  • How did the population and economic patterns of the american west change because of governmental policies, such as the homestead
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!