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Slav-nsk [51]
2 years ago
8

In open economies, A. countries can save only by acquiring foreign wealth. B. investment always refers to the domestic stock mar

ket. C. unlike the case of a closed economy, saving and investment are not necessarily equal. D. saving and investment are necessarily equal contrary to the case of a closed economy. E. as in a closed economy, saving and investment are not necessarily equal.
Business
1 answer:
ohaa [14]2 years ago
8 0

Answer:

C. unlike the case of a closed economy, saving and investment are not necessarily equal

Explanation:

An open economy occurs when international businesses in addition to domestic ones engage in trading activities.

Exchanges that occur may be for management expertise, goods and services, or technology.

In contrast a closed economy is one where there is no buying or selling with international businesses.

In an open economy people can put their savings in investment outside of the country. So domestic investment is usually not equal to savings.

However in a closed economy. All the savings are invested locally, so investment is usually equal to savings

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6 0
3 years ago
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Which statement would not be a way for the government to reduce the national debt?
Anastasy [175]

Answer:

Increasing government spending in the form of infrastructure and  welfare

Explanation:

In order to reduce the national debt, the government need to take a conscious measure to use the government budget as little as possible.

Investment in infrastructures (such as military bases,. building new roads or parks) and government programs (such as expensive healthcare or government funded jobs) tend to take a large amount from the government budget. This will most likely resulted in the increase of national debt.

7 0
3 years ago
B. At one time, the centrally planned economy of China encouraged farmers to produce
gladu [14]

Answer:

At one time, the centrally planned economy of China encouraged farmers to produce  iron in their backyards, rather than have factories make iron. This proved unsuccessful,  since most of the farmers' iron was of poor quality. Why do you think this approach was  unsuccessful? How could this experiment become a success in a free market economy?

The reason why the approach whereby farmers make iron in their backyard could not work out is as a result of not being inclined in that market as they are only skilled in agriculture, also they do not understand the rhetorics of the business.

The experiment would be a success in a free market as anyone is allowed to sell such product, this gives room for competition and helps to price reduction which is good for the consumers, also it would help in improvement of such product's quality because of competition involved

Explanation:

3 0
3 years ago
In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of retur
harkovskaia [24]

Answer:

b. go down.

Explanation:

The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will <u>Go down</u>

5 0
3 years ago
Which option identifies the most likely basic requirement in the following scenario?
Savatey [412]

Answer: C. an infrastructure providing educated workers and advanced machines

Explanation:

Since the developing country needs to shift from smallholding to a modern state-of-the-art agribusiness-style farming, it's vital for the country to have an infrastructure providing educated workers and advanced machines. The educated workers will help in handling the technical know-how of the.machines used for the modern agribusiness.

An infrastructure that's providing cheap

and unskilled laborr isn't ideal in this case. Also, traditional subsistence farming won't help since the country is moving to a modern style.

8 0
3 years ago
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