A moderate increase in a budget deficit that leads to a moderate increase in a trade deficit and a moderate appreciation of the exchange rate is not necessarily a cause for concern.
<h3>
What is Budget Deficit?</h3>
- When spending surpasses income—that is when the entire amount of money one spends exceeds the total amount of money one gets in—a budget deficit results.
- Both small and big scales of this are possible. For instance, if a person's total monthly costs exceed his or her monthly household income, the household budget may be in deficit.
- When operating expenses exceed revenue, businesses have budget shortfalls.
- The same fundamental idea still holds true: the corporation is in the red because its total revenue is less than what it owes. This can lead to debt, just like it can on an individual basis.
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Answer:
$ 615,000
Explanation:
Data provided :
Capital budget = $ 650,000
Debt ratio = 40%
Equity ratio = 60%
thus,
The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000
= $ 390,000
Dividend to be paid = $ 225,000
Therefore,
the net income must be earned = $ 390,000 + $ 225,000
or
The net income must be earned = $ 615,000
Answer: Less than one year, guaranteed returns
, and a money market product
What I put for my answer think its right
Explanation:
Answer:
Rate = $33
Maximum Income = $5445
Explanation:
Let x be the amount of increase in rental to achieve maximum profit.
So, Rate = (30+x)
When rate increase by x, the quantity decreases by (180 -5x).
Income = (30+x) * (180 - 5x)
Income = 5400 - 150x + 180x - 5x²
Income = -5x² + 30x + 5400
The income will be maximized when derivative of Income is zero.
Taking derivative,
- dI/dx = 2 * -5x + 1 * 30x° + 0
- -10x + 30 = 0
- -10x = -30
- x = -30 / -10
- x = 3
The rate at which cars should be rented to earn maximum income is 30 + 3 = $33 per day per car.
Maximum Income will be,
Rate = 33
Quantity = 180 - 5(3) = 165 cars
Max Income = 33 * 165 = $5445
Answer:
National law school of thought
Explanation:
The natural law school of thoughts refers to analyze the behavior of humans also it figured out the moral rule occurs from the behaviors.
It is inherent laws that are applied to all societies, communities, etc also it is common for all whether it is mentioned or officially announced
It should be rational and reasonable too
Therefore the given scenario represents the National law school of thought
