Answer:
Explanation:
Inventories are part of investment and therefore included in GDP because firms produce goods and these goods may be unsold at the time GDP is computed
The value added method of calculating GDP recognizes inventory. Value added from raw materials to work in process and to finished goods are part of what goes into the computation of GDP
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If the exchange rate rises, then the quantity of dollars demanded decreases because with the higher u. S. Exchange rate, u. S. Exports decreases.
What happens when the exchange rate decreases?
- A fall in the exchange rate is known as a depreciation in the exchange rate (or devaluation in a fixed exchange rate system).
- It means the currency is worth less compared to other countries.
- For example, a depreciation of the dollar makes US exports more competitive but raises the cost of importing goods into the US.
What does a rise in exchange rate mean?
- When an exchange rate changes, the value of one currency will go up while the value of the other currency will go down.
- When the value of a currency increases, it is said to have appreciated.
- On the other hand, when the value of a currency decreases, it is said to have depreciated.
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Answer:
The correct answer is 3.
Explanation:
Giving the following information:
Your coin collection contains fifty-four 1941 silver dollars. These coins have appreciated at a 10 percent annual rate.
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
i= 0.10
PV= 54
n= 2060 - 1942= 119
FV= 54*1.10^119= 4,551,172.47
Total equity of the company is the amount of invested plus the income generated during the year. If any dividend is paid during the year, the amount of dividend is subtracted before arriving at the ending shareholders’ equity.
Ending shareholders’ equity = Amount invested + Net Income – Dividend
= $15000 + ($35000- $23000) - $2000
= $27000
Therefore, shareholders’ equity balance would be $27,000.
