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pickupchik [31]
3 years ago
10

A government deficit has decreased from 100 to 60. The country's trade deficit is 120 and private savings equal 80 and investmen

t equals 100. If Ricardian neutrality holds true, after this change in the government's budget, private savings will equal:
Business
1 answer:
charle [14.2K]3 years ago
3 0

Answer:

40

Explanation:

According to Ricardian theory, any change in budgets deficits or surpluses should be completely offset by an equal change in private savings.

In this case, the original amount of private savings was 80, but since the budget deficit decreased by 40, then the private saving should also decrease by 40. The total private saving = 80 - 40 = 40

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vSelected financial data for The Portland Porcelain Works Coffee Mug Division is as​ follows: Sales $ 2 comma 000 comma 000 Oper
ioda

Answer:

Capital turnover = 2.5 times

Explanation:

given data

Sales =  $2,000,000

Operating income = $400,000

Total assets = $800,000

Current liabilities = $120,000

Target rate of return = 13​%

Weighted average cost of capital = 6​%

to find out

Portland Porcelain Works Coffee Mug Division capital​ turnover

solution

we get here Portland Porcelain Works Coffee Mug Division capital turnover that is find here by dividing sales by total assets

so

Capital turnover = \frac{sales}{total\ assets}     ......................1

put here value

Capital turnover = \frac{2,000,000}{800,000}

Capital turnover = 2.5 times

5 0
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mariarad [96]
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3 0
3 years ago
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Answer:

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Explanation:

5 0
2 years ago
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valentinak56 [21]

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7 0
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Answer:

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