Answer: D) saving equals investment as long as NX = 0
Explanation:
The last option was incomplete as it should have said ...NX = 0.
The Income/GDP of a country that is open to international trade is calculated as follows:
Income = Consumption + Investment + Government spending + Net exports
Y = C + I + G + NX
If NX = 0 then the formula becomes:
Y = C + I + G
Investment in this scenario is therefore:
I = Y - C - G
This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.
S = Y - C - G = Y
Answer:
11.21%
Explanation:
Calculation for What is the company’s sustainable growth rate
Sustainable growth rate=ROE*b/1-ROE*b
Let plug in the formula
Sustainable growth rate=14.4%*(100%-30%)/1-=14.4%*(100%-30%)
Sustainable growth rate=14.4%*70%/1-14.4%*70%
Sustainable growth rate=0.1008/0.8992
Sustainable growth rate=0.11209*100
Sustainable growth rate=11.21% approximately
Therefore the Sustainable growth rate will be 11.21%
Answer:
the process capability index for the process is 0.4761
Explanation:
The computation of the process capability index for the process is shown below:
= minimum of [(23.3-23.1) ÷ (3 × 0.14),(23.1 - 22.8) ÷ (3 × 0.14)]
= minimum of (0.4761, 0.7142)
= 0.4761
Hence, the process capability index for the process is 0.4761
The same should be considered and relevant
