Answer:
The answer is B a negative entry in the current account.
Explanation:
Balance of payments accounts of a country is the recording economic transactions (the payments and receipts) of the residents of the country with residents of other countries during a period of time.
Balance of Payments is in deficit or negative if imports are more than the exports and it is in surplus or positive if exports are more than imports during a period of time.
We have three categories of Balance of Payments:.
1. The current account which records the inflow and outflow of goods and services.
2. The Financial account which records
monetary flow like investment in real estates, fixed income(bonds), stocks etc.
3. The capital account which records the investments in fixed assets like land.
Answer:
False
Explanation:
Credit can allow you to make investments that earn money such as a house or a college education. It can also allow you to take advantage of good prices on things that you need such as a car or laptop. While there are disadvantages to credit, and you have to be careful when using it, there are many advantages as well.
Answer:
The budgeted gross profit for July is $ 11,000.
Explanation:
total cost of goods sold per july = $8,800
total units sales = $ 550
cost of goods sold for unit = $16
budgeted sale per unit is = $36
budgeted gross profit for unit = selling price - cost of goods sold
= $36 - $16
= $20
total budgeted gross profit for july
= total units sales in july *gross profit per unit
= 550*$20
= $ 11,000
Therefore, The budgeted gross profit for July is $ 11,000.
Answer:
equilibrium level of output should increase by $80 million
Explanation:
The concept of multiplier is used to explain how an increase or decrease in the money available in the economy changes economic output. In this case you have to multiply the increase in government spending by 4 = $20 million x 4 = $80 million.
Money doesn't stand still, imagine the government gives you $100, and unless you bury it in the ground, those $100 will multiply and in this case convert to $400. The idea is not that complicated, since once you receive the money, you will spend some part of it (or all) and you will save the remaining part. Let's say you buy groceries at the supermarket and spend $75, and save $25. The owner of the supermarket (the corporation or individual) will use $60 of your $75 to pay for dairy products that were purchased before. The rest will be kept in the bank. The seller of the dairy products will in turn use a part of the $60 received to pay for gas. And then it will be turn of the gas station, its employees, etc.
Answer:
The answer is D - No,Yes, No
Explanation:
The payback period is the time it will take the company to recover the initial investment given the estimated cash-flows over the life of the project. This payback period can be calculate even when the company does not yet know the required rate of return to use in its capital budgeting.
Net Present value is the sum of the discounted cash-flows over the life of the project, including the initial outlay. In order to calculate the discounted cash-flows, the required rate of return must be known, and therefore without it, the net present value of the project cannot be calculated.
The internal rate of return is the rate that equates the sum of the discounted cash-flows to zero. In other words, irrespective of what the required rate of return is, one can calculate this rate that would result in a net present value of zero from the given initial outlay and cash-flows expected over the life of the project.
