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Colt1911 [192]
3 years ago
15

An American worker is hired by a German consulting firm operating in New York. They pay him $50,000 in wages. The new worker's c

ontribution is to bring a new client to the firm that buys consulting services for $70,000 . Assume no other new cost was involved in this other than the wage. The client is a Mexican firm located in Mexico City. Which of the following is correct
a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000
b. Consumption increases by $70,000 and imports increase by $70,000,50 US GDP remains unchanged
c. Consumption increases by $50,000 and exports increase by $20,000, so US GDP increases by $70,000
d. National income increases by $50,000 and factor payments from abroad increase by $50,000, so US GDP remains unchanged
Business
1 answer:
Pachacha [2.7K]3 years ago
5 0

Answer:

a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000

Explanation:

The German firm hired an American worker and paid him $50,000. That means that American national income will increase by $50,000.

Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.

Total GDP increases by the amount of $50,000  + $20,000 = $70,000

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Assume that Jack, Hal, and Sophia enter into a valid contract for the sale of the restaurant and for the covenant not to compete
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Answer: Reformation

Explanation: In simple words, reformation refers to a process in which something is changed in the current subject to set it again on the right path.

In the given case, the judge believes that the time period set for avoiding the competition is unusually long. Thus, they can reform the contract to make it suitable and justified for all the parties involved.

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3 years ago
How could the federal reserve encourage banks to lend out more of their reserves?
natta225 [31]
Had to look for the options and here is my answer.
How the Federal Reserve could persuade banks to lend out more of their reserves is by REDUCING THE DISCOUNT RATE. The Federal Reserve is known to be the central bank of the United States which regulates the financial activities of the nation and how this affects their economy. Hope this helps.
5 0
3 years ago
Marketing professionals understand that people have needs, wants, and demands. A demand is _____.
Sonja [21]
The correct answer is:  [C]: 
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 "<span>a want for an item that is much in demand by a great number of people" .</span>
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<u>Note</u>:  Let us consider the other answer choices:
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Choice:  [A]:  "<span>a need for basic necessities, such as food, clothing, and shelter."
This refers to a "need" — NOT a "demand" ; so we can rule out "Choice: [A] " .
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4 0
2 years ago
Stock Y has a beta of 1.30 and an expected return of 14.9 percent. Stock Z has a beta of .95 and an expected return of 12.8 perc
Sever21 [200]

Answer:

Stock Y is overvalued and Stock Z is undervalued.

Explanation:

The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.

The required rate of return on the stock is calculated under the CAPM approach suing the following formula.

r = rRF + Beta * rpM

Where,

  • rRf is the risk free rate
  • rpM is the risk premium on market

r of Stock Y = 0.052 + 1.3 * 0.077  =  0.1521 or 15.21%

The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.

r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%

The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.

6 0
3 years ago
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