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kozerog [31]
4 years ago
12

Suppose interest rates fall in the United States, but they don't fall in other nations. What is the impact on the flow of financ

ial capital, the value of the U.S. dollar, and U.S. net exports (based on the changing value of the dollar)? Capital Flow / Value of the U.S. dollar / Net Exports (3 points)
Business
1 answer:
Allushta [10]4 years ago
5 0

Outflow of financial capital : Depreciating value of the U.S. dollar : Increased net exports

<u>Explanation:</u>

There will be an immediate outflow of financial capital due to the fall in the interest rates as it will be no more profitable in relation to other nations. Due to the capital outflow, the US currency demand will fall and results to the decrease in the exchange rate (price) or it can be said that the exchange rate depreciates.  

This depicts that, the US exports will be cheaper as the US dollar price or exchange rate decreases. In other words, it can be stated that the value of the other nations’ currencies will increase as compared to the US currency.

This will make it easier to purchase the same baskets for reduced bill amount and thus the exports may get increased.

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The Greenback Store’s cost structure is dominated by variable costs with a contribution margin ratio of 0.40 and fixed costs of
velikii [3]

Answer:

Cost structure:

\left[\begin{array}{ccc}&$greenback&$one-Mart\\$sales&480,000&480,000\\$variable cost&288,000&144,000\\$contribtuion&192,000&336,000\\$fixed&100,800&244,800\\$operating&91,200&91,200\\\end{array}\right]

a 10% increase in sales generates increase in profits for:

greenback: 19,200

one-Mart:   33,600

Explanation:

10 increase in sales:

480,000 x 10% = 48,000

to calcualte the increase in profit, we multiply the increase in sales by the contribution margin:

greenback 48,000 x 0.4 =  19,200

one-Mart 48,000 x0.7 = 33,600

8 0
3 years ago
Amber is in the process this year of renovating the office building (originally placed in service in 1976) used by her business.
Andrei [34K]

Answer:

Correct option is (b)

Explanation:

Disabled access credit is granted by IRS to small business owners on expenses incurred by them in making their structure accessible for physically handicapped people. Cost incurred could be on constructing ramps for wheelchairs or providing hear aids to people with hearing impairment.

The maximum credit is $5,000 or 50% of cost not exceeding $10,250 ($250 initial cost cannot be claimed for exemption), whichever is less.

Here, Cost incurred is $11,000. So 50% (10,250 - 250) or 0.5×10,000 that is $5,000 would e Amber's disabled access credit.

4 0
4 years ago
Zero-based budgeting assumes that all funding allocations must be justified from zero each year.
Vanyuwa [196]
True. Zero-based budgeting assumes that all funding allocations must be justified from zero each year. The goal in a zero-based budget is to have the income minus the expenses of the business equal zero. 
6 0
3 years ago
In an online blog, Oren states that Publicity Corporation invaded the privacy of individuals to collect marketing data for its c
kogti [31]

Answer:

C) libel

Explanation:

Libel is written defamation. An individual or a business can sue someone else for writing something that causes them injury and diminishes their reputation, esteem, respect, good will,  confidence, etc..

Libel is considered a tort, therefore individuals or businesses who believe they have been libeled can sue to recover monetary compensation.

5 0
3 years ago
If a corporation distributes after-tax profits to its stockholders in the form of dividends, the government considers these dist
Ronch [10]

Answer:

It is out rightly TRUE.

6 0
3 years ago
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