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Dominik [7]
3 years ago
6

Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. The

n, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds
Business
1 answer:
balu736 [363]3 years ago
5 0

Answer:  4. Demand will shift inwards, lower rates and decreasing lending.

Explanation:

People demand loanable funds for spending on consumption and investment. If there is a recession, people will buy less goods and companies will invest less as well.

This will reduce the demand that people and companies have for loanable funds. The demand will therefore shift inwards to the left and lead to lower rates and decreased lending.

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Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the t
Thepotemich [5.8K]

Incremental revenue is often compared to production costs. The stained tables can be sold for $178,000.

<h3>What is incremental revenue?</h3>

Incremental revenue is the profit that a business earns through rising sales.

It can be used to determine the additional revenue generated by a particular product, investment, or direct sale from a marketing campaign when sales value has grown.

As per the information,

the tables could be sold for $442,000 and after additional processing the tables can be sold for $620,000. The incremental revenue is equal to $620,000 - $442,000 = $178,000

Therefore,The stained tables can be sold for $178,000.

Learn more about incremental revenue here:

brainly.com/question/1446002

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8 0
2 years ago
Anner Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps i
kenny6666 [7]

Answer:

When you collect all the costs related to performing a particular activity (e.g. producing a product), you have created an activity cost pool. This helps to get an accurate estimate of the cost of that activity or task and is mostly applied in <em>activity-based costing system</em>. Different activities may require different cost pools.

The activities below are thus classified accordingly:

1. Labelling and Packaging - <em>Batch Cost Pool</em>

2. Plant Security - <em>Facility Level Cost Pool</em>

3. Sales Commission - <em>Product Cost Pool.</em> (This is incurred in selling the product and so must be pre-built into the price of the product.

4. Supplies - <em>Unit Level Cost Pool </em>(Supplies are incidental items that are expected to be consumed in the near future. Examples are paper clips that you use in the daily workings of the business. Supplies are differ from Materials which refer to the raw stock from which finished goods are made. Examples of material are raw materials, components, sub-components, and production supplies. Materials would go under Product Cost Pool.

Cheers!

3 0
3 years ago
An agreement to exchange dollar bank deposits for euro bank deposits in one month is a:_________
koban [17]

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>

<h3>What is a forward contract?</h3>

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.

Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.

Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.

For more information on <u>Forward Transaction</u>, refer to the given link:

brainly.com/question/28238316

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8 0
1 year ago
A dollar available today is always worth more than a dollar not available until a future period.
Lostsunrise [7]

Answer:

The statement is: True.

Explanation:

The Time Value of Money is a concept that states a dollar today is always worth more than a dollar tomorrow. The theory relies on the earning capacity of money. The approach is the reason why entrepreneurs prefer to capitalize on their investments the soonest so the more money available now will represent for them more money accrued in the future.

8 0
3 years ago
Obeying the law is what kind of <br> Ethical Behavior
Lapatulllka [165]

Answer:

Basic level

Explanation:

Obeying the law is the basic demand of constitution of any country from its citizens. It is basically following the general rules of being the citizen of country.

Ethical behavior is about being morally right in your actions, it is no where defined properly what is ethical, sometimes even unethical behavior does not count in illegal behavior.

As for example if my colleague asks for a pen, and I do not help him, even though I have extra pen, is unethical behavior but it is not illegal.

But since it is unethical it is not correct morally, although all the legal actions are ethical.

4 0
3 years ago
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