1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ronch [10]
3 years ago
10

Suppose a small open economy has a floating exchange rate and the government reduces spending. What will happen to real income i

n the short run?
Business
1 answer:
Mazyrski [523]3 years ago
7 0

Answer:

Less government spending will make the currency value of the small country to fall compared to other currencies, because less government spending means less printing of money, and a slower growth of the money means less inflation, and a cheaper currency.

This will make the exports of the small open economy attractive, leading to an increase in this component of aggregate demand. Such scenario will result in a rise of real income in the short run.

You might be interested in
Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $605,
BARSIC [14]

Answer and Explanation:

The computation is shown below:

Return on investment = income ÷ investment

For Simone

= $54 ÷ $605

= 8.93%

For Riley

= $57 ÷ $650

= 8.77%  

As it can be seen that simone contains the return on investment so the simone would be preferred

Also, the other factor that should be considered before doing any kind of investment i.e. risk

6 0
3 years ago
Summit Software, Inc., recently celebrated its fifth year of business. Jim Mueller, the proprietor, started the software manufac
kirill115 [55]

Answer:Q1. Is Summit software is gazelle? Support your answer.

Ans.  .Gazelle define as  a gazelle company is a high-growth company that has been increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $1 million. Yes from this definition, we can say that this software is gazelle.

Q2.What problems may Jim face by owning such a fast-growing business?

Ans. Faces problems that the As the business grows rapidly, there would be more expectations from the customers. They would expect for change and more innovation in their products. Mr. JM has only three employees and they are burdened with heavy load of work.

The competition arises between firms. Some might be healthy and some might be unhealthy. Unhealthy competition may lead Mr. JM to go in a wrong path.

Q3. Are gazelle more important to the economy that traditional growth business?why or why not?

Ans. Gazelles are vital for the growth of the economy as the country is being benefitted by the profit received by gazelles. Gazelles grow rapidly and hence the economy of the country grows rapidly. Traditional growths in businesses are very slow but they also bring steady profit for the country at a lower and standard level.

Explanation:

7 0
3 years ago
Of the 9 elements suggested by the SBA to be contained in a business plan, how many are solely focused on financial factors?
Viefleur [7K]

Two elements in a business plan that are solely focused on financial factors are the <u>Funding Request</u> and the <u>Financial Projections</u><u> sections</u>.

<h3>What is a business plan?</h3>

A business plan is a strategy document that contains the following information about a business:

  • Mission statement
  • Firm's product or service
  • Company's leadership team
  • Company's leading employees
  • Company's location
  • Financial information
  • Growth plans.

According to the SBA, the business plan must contain the following nine elements:

  • Mission Statement
  • Date of business commencement
  • Names of founders and their functions
  • Number of employees and location of the business, including branches or subsidiaries
  • Description of plant or facilities
  • Products manufactured/services rendered
  • Banking relationships and information regarding current investors
  • Summary of company growth including financial or market highlights
  • Summary of management's future plans.

Thus, the two elements in a business plan that are solely focused on financial factors are the <u>Funding Request</u> and the <u>Financial Projections</u><u> sections</u>.

Learn more about business planning at brainly.com/question/25453419

4 0
3 years ago
A bank has $1,000 in deposits and the required reserve ratio is 10 percent. Based on this information
scoundrel [369]

Answer:

Required reserves = Deposit * reserve ratio

= 1,000 * 10%

= $100

Excess reserves = Deposit - Required reserves

= 1,000 - 100

= $900

Assets                                                             Liabilities

Reserves                                               Deposits                $1,000

   Required               $100

   Excess              <u>     $900</u>

Total assets            $1,000                 Total liabilities      $1,000

b. Potential total deposit creation:

= Excess reserves / Reserve ratio

= 900 / 10%

= $9,000

6 0
3 years ago
Finance companies have enjoyed very high rates of growth because they:________.
Wittaler [7]

Answer:

a. are willing to lend to riskier customers than commercial banks.

Explanation:

Financial companies are those companies which loan funds to individuals and businesses.

Unlike commercial banks who lend funds only to highly credit worthy customers, financial companies are liberal in their lending and are willing to finance riskier projects and extend credit to individuals with low credit rating.

As a consequence of assuming higher risk than banks, such companies also charge a higher rate of interest than banks.

Owing to above, finance companies enjoy higher rate of growth.

8 0
3 years ago
Other questions:
  • Which of the following is a career within the communication industry ?
    14·2 answers
  • Which of these is not a good resume tip?
    6·1 answer
  • If a company's revenues are higher than its expenses, it will cause:
    12·1 answer
  • In your research project on tourism, you must collect data before the tourist season ends because the project requires interview
    11·2 answers
  • Why is economic growth important
    9·1 answer
  • You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been
    6·1 answer
  • Which of the following causes the unemployment rate to understate the true extent of joblessness?A) Many fulltime workers really
    14·1 answer
  • HURRY! 20 points! Which of the following is the most important requirement for career advancement in art design?
    13·2 answers
  • which characteristic would concern an auditor about the risk of material misstatements arising from fraudulent financial reporti
    8·1 answer
  • The curvilinear relationship of corporate performance and diversification indicates that:_____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!