Diversification is an important part of investing because

Suppose an economy’s national accounts are GNP = 100, C = 70, I = 40, G = 20 and EX = 20 where GNP is gross national product, C

Marysya12 [62]

Answer:

Imports is 50.

Current account balance is -30.

Total savings is 30.

After tax reduction total savings is 10.

Explanation:

GNP is given as 100.

The consumption expenditure is 70.

The investment expenditure is 40.

The government spending is 20.

The exports are given as 20.

GNP = C + I + G + EX - IM

100 = 70 + 40 + 20 + 20 - IM

100 = 150 - IM

IM = 50

The current account balance is the difference between exports and imports.

Current account balance

= EX - IM

= 20 - 50

= -30

Total savings in the economy is the difference between disposable income and consumption.

Total savings

= Y - C

= 100 - 70

= 30

In case government reduces taxes, the private saving will increase while the public saving will decrease.

Private saving

= Y - T - C

= 100 - 10 - 70

=20

Public saving

= T - G

= 10-20

= -10

Total saving

= Private saving + Public saving

= 20 + (-10)

= 20 - 10

= 10

7 0

3 years ago

On June 19, Don Co., a U.S. company, sold and delivered merchandise on a 30-day account to Cologne GmbH, a German corporation, f

nirvana33 [79]

Answer: $197,600

Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:

200,000 euros @ .988

= $197,600

on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000

Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.

the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

8 0

3 years ago

List five goods that are likely to be sold in a monopolistically.competitive market.

Alexeev081 [22]

Answer:

Cars

Toothpaste

Toilet paper

Hairspray

Televisions

4 0

3 years ago

Varmit-B-Gone is a pest control service that operates in a suburban neighborhood. The company attempts to make service calls at

lubasha [3.4K]

Answer:

VARMIT B-GONE

BUDGETED INCOME STATEMENT

sales revenue ( 90%*1500*2.4*80%*$80) $207,360

Service cost :

variable cost $17280

Maintenance and repair 15,998

Depreciation 42,000 75,278

Gross profit 132,082

marketing and administrative cost :

Marketing (variable ) 10,440

administrative (fixed)(55,000*105%) 57,750

bad debt( 2%*207360) 4,147 72,337

net income 59,745

Explanation:

service cost :

variable cost = (24,000/3600)*2592 = $17,280

maintenance and repairs = (22,000/3600)*2592 *101% = $15,998

Marketing cost = ($14,500/3600)*2592 = $10,440

7 0

3 years ago

if a recession caused millions of people to lose their jobs and millions more to fear unemployment, which of the following will

Shtirlitz [24]

Recession make goods more expensive and the increased prices would cause demand for all consumer goods to decrease

6 0

3 years ago