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baherus [9]
3 years ago
9

What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, as

during a war? Does your answer depend on whether this is a local war or a world war?
Business
1 answer:
kkurt [141]3 years ago
7 0

Answer: When a government purchase increases during a war, be it a local war or a world war. it means that it's savings has reduced, therefore the trade balance will fall. And if the purchase is done to import more goods into the country, the trade balance becomes negative, leading to a deficit.

The exchange rate of the currency will reduce because the country the government is making more currency to be available and surplus, by increasing it's purchase. When they is excess currency in the world market, the currency reduces it value. In a world war, or local war, the exchange rate may not actually reduce because, it will be difficult for the country to have enough money to make its currency to be available in the world market.

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Refer again to the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statement. N
creativ13 [48]

Answer:

$584,000

Explanation:

Calculation to determine what must their amount of sales be

Using this formula

Amount of Sales = (Fixed costs + Target profit) / Contribution margin percentage

Let plug in the formula

Amount of Sales = [42,400+(40,000+63,600) / (106000/424000)

Amount of Sales =(42,400+103,600) / (106,000/424,000)

Amount of Sales=146,000/0.25

Amount of Sales = $584,000

Therefore what The amount of sales will be Cover-to-Cover Company is $584,000

7 0
3 years ago
An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking p
lakkis [162]

Answer:

The solution of the given query is provided below in the explanation segment.

Explanation:

(a)

The diagram according to the given query is attached below.

(b)

Given:

Investor sells,

= 200 shares

at,

= $5.25

Strike price,

= $5

Premium,

= $0.50

If the price is less than $5 is $.75 per share,

The investor's gain will be:

= 200\times 0.75

= 150 ($)

(c)

The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.

3 0
2 years ago
Pollachek Co. purchased land as a factory site for $430000. The process of tearing down two old buildings on the site and constr
UkoKoshka [18]

<u>Solution and Explanation:</u>

Land = 430000 + 48000 - 6800 + 2050 + 1400 = $474650

Building = 2100 + 64000 + 700 + 1200000 + 1610000 + 220000 = $3096800

In the land, cost of land has been included and along with amount to raze old building is included. salvage value is subtracted and legal fees is included and insurance on property cost is also included in the calculation of land.

In the calculation of building, land survey fees is included, drawing of factory plans is included, insurance premium fess is included, instalments amounts is included and interest cost is also included.

8 0
3 years ago
A representative gives a seminar to investors, making a presentation about successful hedge fund strategies. It is attended by 1
jeyben [28]

Answer:

A representative gives a seminar to investors, making a presentation about successful hedge fund strategies. It is attended by 10 retail clients and 20 institutional clients. FINRA defines this as: a retail communication.

Explanation:

Hope this helps!

Mark me as Brainlineast.

3 0
3 years ago
Assume that Maia spends all of her income on halvah (H) and pomegranates (P) and is purchasing the optimal consumption bundle. I
mamaluj [8]

Answer:

The correct answer is:

$4 (D.)

Explanation:

From the question, we are told that:

the price of halvah (MUH)= $12

the price of pomegranates (MUP)= ????

Next, we are also told that the optimal consumption ratio of MUH to MUP = 3

This means that the Mauginal Utility of halvah (H) to the marginal utility of pomegranates (P) = 3

MUH/MUP = 3

12/MUP = 3

MUP = \frac{12}{3} = 4

MUP = $4

5 0
3 years ago
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