When there is an increase in the deficit of the current account, the pressure on the home currency value all things equal would be a downward pressure.
<h3>What happens when there is a current account deficit?</h3>
A current account deficit means that the country is earning less from exporting goods to other countries than it is losing from importing from other nations.
What this means is that more money is flowing out of the country than the money that is coming in. What this leads to a loss in currency value because it points to less demand for the home currency.
This is because the deficit would place a downward pressure on the local currency. On the upside, this decrease in currency value might spur exports which would lead to a better current account balance.
In conclusion, there will be downward pressure.
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Answer:
current ratio for MARJORAM = Current asset / current liabilities
= $173,000/ $108,400
= 1.59
Explanation:
step 1 :calculate the total current asset of the company which is calculated below.
current asset
Cash $19,000
Note Receivable 35,000
Account Receivable 48,400
Inventory <u> 70,600</u>
Total <u> 173,000</u>
Note receivable is included in the current asset because its due date is less than 12 months.
step 2 : divide the current asset by the current liabilites in order to determine the current ratio
Answer:
The appropriate response is "12.47%".
Explanation:
The given values are:
Borrowed amount,
= 152300
APR,
= 11.75%
i.e.,
= 0.1175
Now,
The effective annual rate will be:
= 
On substituting the given values, we get
= 
= 
= 
= 
The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is called externality.
What does the term externality mean?
Externalities are situations when the production or consumption of products and services has an impact on other people that results in costs or advantages that are not accounted for in the pricing charged for the goods and services being offered.
What impact do externalities have on the economy?
When people, households, and businesses fail to internalise the indirect costs or advantages of their economic interactions, externalities pose serious issues for economic policy. Inefficient market outcomes are the result of the resulting wedges between social and private costs or profits.
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