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nadya68 [22]
2 years ago
8

When a closed economy is in equilibrium, we know with certainty that

Business
1 answer:
faust18 [17]2 years ago
4 0

Answer:

inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

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Eric receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real intere
MArishka [77]

Solution :

Given :

The bonds offer a \text{real interest rate} of 4.5% per year

Tax rate = 10% = 0.10

Inflation rate = 2

\text{Nominal interest rate} = \text{real interest rate} + \text{inflation rate}

\text{Nominal interest rate} = 2 + 4.5

                                   = 6.5

\text{After tax nominal rate} = \text{Nominal interest rate} $\times (1-\text{tax rate})$

\text{After tax nominal interest rate} = $6.5 \times (1-0.10)$

                                                  $=6.5 \times 0.90$

                                                 = 5.85

After tax real interest rate = \text{after tax nominal rate} - \text{inflation rate}

                                           = 5.85 - 2.0

                                            = 3.85

\text{Inflation rate} = 7.0

\text{Real interest rate = 4.5}

\text{Nominal interest rate} = \text{real interest rate} + \text{inflation rate}

                                   = 7 + 4.5

                                  = 11.5

\text{After tax nominal interest rate} = \text{Nominal interest rate} $\times (1-\text{tax rate })$

                                                  $=11.5 \times (1 - 0.10)$

                                                  $=11.5 \times 0.90$

                                                = 10.35

\text{After tax nominal interest rate} = 11.5 x (1 - 0.10)

                                          = 11.5 x 0.90

                                         = 10.35

\text{After tax nominal interest rate} = \text{after tax nominal rate} - \text{inflation rate}

                                           = 10.35 - 7.0

                                          = 3.35

Putting all the value in table :

\text{Inflation rate}    Real interest  Nominal interest  After tax nominal  After tax  

                                  rate                rate               interest rate       interest rate

2.0                             4.5                  6.5                        5.85                   3.85

7.0                              4.5                11.5                         10.35                3.35

Comparing with the \text{higher inflation rate}, a \text{lower inflation rate} will increase the after after tax real interest rate when the government taxes nominal interest income. This tends to encourage saving, thereby increase the quantity of investment in the economy and the increase the economy's long-run growth rate.

7 0
3 years ago
The final step in recognizing the completion of production requires a company to?
Maru [420]

'The final step in recognizing the completion of production requires a company to debit Finished-Goods Inventory and credit Work-in-Process Inventory.

Production is the process of making or producing goods or products from raw materials or parts. In other words, production takes inputs and uses them to create outputs suitable for consumption, i.e. goods or products of value to the end-user or customer.

Production is the process of making, harvesting, or creating something, or the quantity of something manufactured or harvested. An example of production is the manufacture of furniture. An example of production is harvesting corn for food. An example of production is corn production.

The economist classifies the factors of production into his four categories: land, labor, capital and entrepreneurship. The first element of production is land, which includes all natural resources used to produce goods and services.

Learn more about production brainly.com/question/16755022

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4 0
2 years ago
If the total value of goods exported from a nation is less than the total value of goods imported to the nation, the nation is e
kompoz [17]

If the total value of goods exported from a nation is less than the total value of goods imported to the nation, the nation is experiencing a Trade deficit.

The difference between imports and exports is known as the trade deficit or negative balance of trade (BOT). A trade deficit develops when an economy spends more on imports than on exports. It can be computed for various commodities and services as well as for cross-border transactions.

The difference between the monetary value of a country's exports and imports over a specific time period is known as the balance of trade deficit, commercial balance, or net exports. A distinction between a trade balance for products and one for services is occasionally drawn.

Learn more about trade deficit here

brainly.com/question/24473707

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8 0
1 year ago
__________________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficul
Diano4ka-milaya [45]

Answer: Nontariff barriers

Explanation:

Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include include embargoeds, quotas, sanctions, and levies.

The main reason for trade barriers are to generate revenue for the government and also to protect the local industries.

8 0
3 years ago
When considering the economic prospects of a country, it can be said that Group of answer choices the advantages of building bra
tankabanditka [31]

Answer:

Options 1 - 4 are True but 5 is FALSE

Explanation:

All options given are indicators of economic growth and strong economic performance

When considering the economic prospects of a country, it can be said that: 1. the advantages of building brand loyalty and gaining experience in a country's business practices is greater for a last-mover than for a first-mover <em>because the last-mover has the chance to learn from the mistakes of the first-mover and perfect on them</em>

2. countries which do not have property rights protection tend to achieve greater economic growth rates because<em> </em><em><u>prosperity and property rights are inextricably linked</u></em><em>. The importance of having well-defined and strongly protected property rights is now widely recognized among economists and policymakers</em>

3. the economic system and property rights regime are reasonably good predictors of economic prospects of a country because <em>widely accepted explanation is that </em><u><em>well-enforced property rights provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>

4. countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth because as stated in 3 above <u><em>ill-enforced property rights does not provide incentives for individuals to participate in economic activities, such as investment</em></u><em>, innovation and trade, which lead to a more efficient market.</em>

5.countries with command economies tend to achieve greater economic growth rates than free market economies.

<em>This is FALSE because one of the Command economy disadvantages include lack of competition and lack of efficiency. </em>

<em />

5 0
3 years ago
Read 2 more answers
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