When offering financial products to clients you may

Which of the following is true? A nation can have a comparative advantage in the production of a good only if it also has an abs

Kamila [148]

Answer: <u><em>A nation cannot have a comparative advantage in the production of every good.</em></u>

The principle of comparative advantage states that under free commerce, an representative will produce more of and consume less of a commodity for which they have a comparative advantage. Comparative advantage is the economic experience depicting the work increase from trade for individuals or nations, which originate from differences in their factor endowments or technological progress.

7 0

3 years ago

Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spe

laiz [17]

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

7 0

3 years ago

Use the information to answer the following questions. XXX, Inc. Balance Sheet 2018 2017 2018 2017 Cash 200 450 Accounts Payable

Anna11 [10]

Answer:

$2,145

Explanation:

For the computation of Net Operating Profit After Taxes (NOPAT) first, we need to compute the tax rate which is shown below:-

Tax rate = Tax expense ÷ Earnings before tax

= 700 ÷ 2,000

= 35%

Net Operating Profit After Taxes (NOPAT) = EBIT × (1 - tax rate)

= 3,300 × (1 - 35%)

= $2,145

Therefore for computing the Net Operating Profit After Taxes (NOPAT) we simply applied the above formula.

3 0

3 years ago

Find the interest for one month on $575 at 3.1% annual interest paid monthly.

nika2105 [10]

Answer:

$1.5

Explanation:

Interest is compounded monthly.

The applicable formula for amounts after one month is

A = P + (1 + r)^n

P = principal amount $575

r is interest rate 3.1% per year or 3.1/12 per month =0.26% or 0.0026

n= 1 month

A = $575 +( 1+0.0026)^1

A =$575x 1.0026

A= $576.495

A= $576.5

Interest earned in the month

= $576.5 -$575

=$1.5

4 0

3 years ago

Suppose the real interest rate is 2.8%, and the inflation rate is 7%. (1) How much do you need to invest now in order to get $10

erastova [34]

Answer:

1)

approach 1, using the approximate real and nominal interest rates:

nominal interest rate = real interest rate + inflation rate = 2.8% + 7% = 9.8%

present value = $100 / (1 + 9.8%) = $91.07

approach 2, using the exact real and nominal interest rates:

(1 + i) = (1 + r) × (1 + π)

(1 + i) = (1 + 2.8%) x (1 + 7%) = 1.09996

i = 1.09996 - 1 = 0.09996 = 9.996%

present value = $100 / (1 + 9.996%) = $90.91

2)

assuming a $1,000 TIPS, nominal cash flow year 1 = $50

new face value = $1,070

nominal cash flow year 2 = $53.50

new face value = $1,144.90

nominal cash flows year 3 = $57.25 + ($1,144.90 x 1.07) = $1,282.29

assuming a $1,000 TIPS, real cash flow year 1 = $50 / 1.07 = $46.73

new face value = $1,070

real cash flow year 2 = $53.50 / 1.07² = $46.73

new face value = $1,144.90

real cash flows year 3 = [$57.25 + ($1,144.90 x 1.07)] / 1.07³ = $1,282.29 / 1.07³ = $1,046.73

6 0

3 years ago