Answer:
Decreases; increasing
Explanation:
However, the reduction in expenditure on export subsidies <u>decreases </u>the fiscal deficit, thereby <u>increasing</u> public saving.
National savings refers to the sum of public and private savings. Public savings is the government budget balance. An increase in the balance or decrease in deficit implies the public savings increase and also increase in national savings. Then, the decrease in subsidy spending decreases government deficit and increases national savings and supply of loanable funds, so the loanable funds shift to the right.
The interest holds that a rise in price level will make domestic goods relatively more expensive, rate exports and effect imports.
<h3>What are
domestic goods?</h3>
domestic goods are goods that are being produced locally in a particular country which can as well be exported out.
In this case, The interest holds that a rise in price level will make domestic goods relatively more expensive, rate exports and effect imports.
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Answer:
Effect : Increase in Break Even units by 3,750 units to 18,750 units
Explanation:
Break even point is the level of activity at which a firm makes neither a profit nor a loss
Break even Point (Units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Selling price per unit - Variable Costs per unit
= $12 - $8
= $4
Therefore,
<u>Before Increase</u>
Break even Point (Units) = $60,000 ÷ $4 = 15,000
<u>After Increase</u>
New Contribution = $12 - ($8× 1.10)
= $3.20
Therefore,
Break even Point (Units) = $60,000 ÷ $3.20 = 18,750
<u>Solution:</u>
<u>The</u><u> </u><u>following journal entries will be passed:</u>
Accounts Debit Credit
Bond Payable (2000 bonds x $1000) $2,000,000
Discounts on Bonds Payable $30,000
Common Stock (50 shares x $10 x 2000 bonds) $1,000,000
Paid -in Capital in Excess of Par--Common Stock $970,000
(TO RECORD CONVERSION)
Cash ( 2000 * $1000 * 1.01) $2020000
Discount on bonds payable $59216
Bonds payable (2000 * $1000) $ 2000000
Paid - in - Capital - Stock warrant $79216
(To record issuance of bonds with stock warrant)