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lord [1]
2 years ago
13

In an economy open to international trade ________.

Business
1 answer:
Serjik [45]2 years ago
4 0

Answer: D) saving equals investment as long as NX = 0

Explanation:

The last option was incomplete as it should have said ...NX = 0.

The Income/GDP of a country that is open to international trade is calculated as follows:

Income = Consumption + Investment + Government spending + Net exports

Y = C + I + G + NX

If NX = 0 then the formula becomes:

Y = C + I + G

Investment in this scenario is therefore:

I = Y - C - G

This is the same as savings as savings is calculated by subtracting consumption and government spending from the total income. This is because government spending is derived from taxes so the cash that people get to save is their income less than their taxes and consumption expenses.

S = Y - C - G = Y

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One employee may have more deductions than the other employee, such as a larger number of dependents, or may be choosing to pay more of her paycheck into Social Security. 
6 0
3 years ago
Which sentence best completes the diagram?
Ivanshal [37]

Answer:

C. Prices in the country Increase

Explanation:

Inflation describes the general increase in prices in a country over time. Prices tend to rise with the increase in economic growth. A high economic growth rate implies that prices will increase at a high rate.

The Inflation rate is measured by assessing changes in the prices of products and services representing people's consumption. A rise in the inflation rate indicates a general increase in prices.

6 0
3 years ago
Global Commerce Corporation purchased trading debt investments for $136,000 on December​ 31, 2018. There is a decrease of $3,400
stellarik [79]

Answer:

A. Unrealized Holding  Loss - Trading 3,400

Fair Value  Adjustment - Trading 3,400

Explanation:

Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:

Dr Unrealized loss on trading security 3,400

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This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.

3 0
3 years ago
When a company determines the most likely people to buy its product are 20-27 year old middle class women, it is
Agata [3.3K]

When a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its: <em>potential customers/market target.</em>

Every product has a specific group of people that share similar characteristics that it can meet their needs. The unique needs of that group of people is what companies and producers focus on to exploit in creating product and marketing strategy for.

Such unique group of people constitute the market target or potential customers for such product.

Therefore, when a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its potential customers/market target.

Learn more about market target on:

brainly.com/question/24967768

6 0
3 years ago
Knowledge Check 01 Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 p
Flauer [41]

Answer:

C. 25.5%

Explanation:

Net operating cashflow = (250,000 - 100,000) = 150,000; This is a recurring cashflow; the PMT

Cost of equipment; the PV = 400,000

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N =5

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FV = 0

PV = -400,000

then CPT I/Y = 25.41%

Therefore the return is closest to 25.5%

8 0
3 years ago
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