Answer:
Explanation:
When Leverett's exports became less popular, its savings, Y-C-G does not change. Reason being that, it is assumed that Y depends on the amount of capital and labour, consumption depends only on disposable income and government spending is a fixed extrinsic variable.
Since investment depends on interest rate, and Leverett is a small open economy that takes the interest rate as given, thus investment also does not change . Neither does net export change (This is shown by the S-I curve in the attachment).
The decreased popularity of Leverett's exports leads to an inward shift of the net export curve inward. At the new equilibrium,net exports remains unchanged, though the currency has depreciated.
Leverett's trade balance remained the same, despite the fact that its exports are less popular, this is due to the fact that the depreciated currency provides a stimulus to net exports which overcomes the unpopularity of its exports by making them cheaper.
b. Leverett's currency now buys less foreign currency, thus traveling abroad becomes more expensive. This is an instance showing that imports (including foreign travel) have become more expensive- as required to keep net exports unchanged in the case of decreased demand for exports.
Answer:
c. reserves increase by $100 million and the money supply increases by more than $100 million
Explanation:
Based on the information given in a situation where a FRACTIONAL-RESERVE BANKING SYSTEM has no availability of EXCESS RESERVES and no CURRENCY HOLDINGS, which means that if the central bank buys BONDS that worth $100 million, the RESERVES will tend to INCREASE by the amount of $100 million while the MONEY SUPPLY on the other hand will INCREASES by more than $100 million.
Answer:
1. an amount after continuing operations.
Explanation:
In preparing the income statement the transactions resulting into gain or loss from the discontinued operations are always reported in income statement.
For this there is special heading that is
Amount after continuing operations
This basically reflects the gain or loss from the sale of such segment.
This provides for reporting all the transactions as part of business but in an highlighted manner.
True
A captive agent means they have signed a contract to stay with the company for that many number of years
Answer:
Explanation:
The journal entry is shown below:
Work in Process-Molding A/c Dr $3,000
To Accounts Payable Control $3,000
(Being the purchase and used production is recorded)
The computation of the purchase amount is shown below:
= Number of kgs purchased × price per kg
= 500 kgs × $60
= $3,000
The other information which is given is not considered. Thus, ignored it
