Answer:
The company should buy the units because it will save $10,000.-
Explanation:
Giving the following information:
Make in-house:
Unitary variable cost= 2 + 8 + 6= $16
Avoidable fixed cost= $8,000
Buy:
Unitary cost= $15
<u>First, we will determine the total cost of each option:</u>
Make in house= 2,000*16 + 8,000= $40,000
Buy= 15*2,000= $30,000
The company should buy the units because it will save $10,000.-
Answer:
Jessica's for AGI deduction for these costs is:
b. $14.00.
Explanation:
The aggregate gross income (AGI) can be defined as the total amount of income that an individual earns and is used in calculating the amount of income tax that an individual is liable to pay. The AGI can be expressed as follows;
AGI=T×N×W
where;
AGI=aggregate gross income
T=toll amount per way
N=number of times she reported
W=number of way
In our case;
AGI=unknown, to be determined
T=$1.75
N=4
W=2
Replacing;
AGI=(1.75×4×2)=$14.00
Jessica's for AGI deduction for these costs is:
b. $14.00.
Answer:
Real Exchange Rate computed as German goods per U.S. goods: 2
Explanation:
Cost in the US: 0.50 dollar
Cost in Germany: 1 euro
Real Exchange Rate: German Goods / U.S. Goods
Real Exchange Rate: 1 / 0.50 = 2
The real exchange rate measures the price of foreign goods relative to the price of domestic goods.
Answer:
International flows of funds can affect the Fed's monetary policy. For example, suppose that interest rates are trending lower than the Fed desires. If this downward pressure on U.S. interest rates may be offset by <u>outflows</u> of foreign funds, the Fed may not feel compelled to use a <u>tight </u>monetary policy.
Explanation:
A Tight Monetary Policy is when the central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness.
Outflows of foreign funds or the flight of assets occurs when foreign and domestic investors sell off their holdings in a particular country because of perceived weakness in the nation's economy and the belief that better opportunities exist abroad.
The reasoning is as follows, the rate is down in the USA so holders of assets look for better rates abroad as a consequence there is less money in the US domestic economy and automatically the rate tend to rise (remember that interest rate is the price of money). If there is less supply of something the price of that something will go up (ceteris paribus). The same thing will happen to the interest rate without the intervention of the FED.
