Answer:
The correct answer is option d.
Explanation:
Specialization in trade due to the difference in opportunity cost helps in improved allocation of resources globally. It leads to increased production of goods and services around the world as the resources are efficiently allocated.
The well being of people worldwide will be improved, both producers and consumers will be better off. The size of the economic pie will increase with increased production.
The improved allocation will shift the production possibilities outward as countries will be able to produce more.
Answer:
A) formal institutional frameworks erected by the host-country government.
Explanation:
In this case, Wales is considered the host country since Widget Corp.'s home country is Lithuania. Taxes imposed by governments are institutional frameworks, they are not informal rules of the game.
The taxes imposed by Wales are called import tariffs and they are used to increase the price of imported goods and services.
Answer:
expand
Explanation:
In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.
The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.
Answer:
The answer is E. $15 million
Explanation:
We have the bank's net liquidity position is equal to its Cash inflow - Cash outflow.
Cash inflow = incoming deposits + revenues from the sale of nondeposit services + customer loan repayments + sale of bank assets + money market borrowings= 30 million + 15 million + 25 million + 5million + 45 million = $120 million
Cash outflow = deposit withdrawals + acceptable loan requests + repayments of bank borrowings + cash outflows to cover other operating expenses + dividend payments to its stockholders = 20 million + 60 million + 10 million + 5 million + 10 million = $105 million
So, net liquidity position is: 120 million - 105 million = $15 million.
So, the answer is E. $15 million.
Answer:
12
Explanation:
Given that,
Sales price = $9 million
Estimated annual gross income = $750,000
The gross income multiplier is defined as the ratio of sales price to its effective gross income.
Therefore, the gross income multiplier is calculated as follows:
= (Sales price ÷ Estimated annual gross income)
= $9,000,000 ÷ $750,000
= 12
