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2 years ago

Why is it important for the balance of payments to balance?

Business

1 answer:

Rudiy272 years ago

5 0

Answer:

A country's balance of payments tells you whether it saves enough to pay for its imports. ... A balance of payments deficit means the country imports more goods, services and capital than it exports. It must borrow from other countries to pay for its imports. In the short-term, that fuels the country's economic growth.

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Cost-benefit analysis attempts to A. compare the real worth, rather than the market values, of various goods and services. B. co

statuscvo [17]

Answer:

<u>Letter D is correct. C</u>ompare the benefits and costs associated with any economic project or activity.

Explanation:

A cost-benefit analysis is a business approach used to ascertain the main strengths and weaknesses of an organization as a whole. This includes the process of all organizational activities, transactions, and other substantial requirements for the company. The purpose of this approach is to compare the benefits and costs associated with the organization's activities and find ways to reduce costs, time and maximize earnings.

8 0

3 years ago

Southwest U's campus book store sells course packs for $14 each. The variable cost per pack is $12, and at current annual sales

Mumz [18]

Answer:

$23,000

Explanation:

current annual sales = 49,000 packs

Selling price of course packs = $14 each

variable cost per pack = $12

Earnings = $75,000

Contribution:

= current annual sales × (Selling price of course packs - variable cost per pack)

= 49,000 packs × ($14 - $12)

= 49,000 packs × $2

= $98,000

Fixed costs of producing the course packs:

= Contribution - Earnings

= $98,000 - $75,000

= $23,000

4 0

3 years ago

The fed can increase the federal funds rate by

Stella [2.4K]

The answer is selling Treasury bills, which decreases bank reserves. The government securities that are used in open market processes are Treasury bills, notes or bonds. If the FOMC needs to grow the money supply in the economy it will acquire securities. On the other hand, if the FOMC wants to decrease the money supply, it will vend its securities.

5 0

3 years ago

Ethier Enterprise has an unlevered beta of 1. Ethier is financed with 55% debt and has a levered beta of 1.1. If the risk free r

tresset_1 [31]

Answer:

The correct answer is 0.4%.

Explanation:

According to the scenario, the computation for the given data are as follows:

If no debt, then required return can be calculated by using following formula:

Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium

= 6% + 1 × 4%

= 0.06 + 0.04

= 0.10 or 10%

If debt, then required return can be calculated by using following formula:

Required return ( with debt) = Risk free rate + levered Beta × Market risk premium

= 6% + 1.1 × 4%

= 0.06 + 0.044

= 0.104 or 10.4%

So, extra premium required = 10.4% - 10% = 0.4%

6 0

2 years ago

Suppose during the course of a year an economy produces $7 trillion of consumer goods, $1 trillion of investment goods, $5 trill

In-s [12.5K]

Answer:

D) $12 trillion.

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption + Investment + Government Spending + Net Export

Net Export = Export - Import

Net Export = $1 - $2 = -$1

GDP = $7 + $1 + $5 - $1 = $12

All calculations are in trillion

I hope my answer helps you.

4 0

2 years ago