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Bogdan [553]
3 years ago
14

In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem,

you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.
Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____

Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____

Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____
Business
1 answer:
Leni [432]3 years ago
4 0

Answer:

Y = C + I + G + NX

S = Y - C

S = I + G + NX

Explanation:

National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}

National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C

Using above equations, Y = C + S , Y = C + I + G + NX

C + S = C + I + G + NX

So, S = I + G + NX

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A Plus Appliances sells dishwashers with a fourminusyear warranty. In​ 2019, sales revenue for dishwashers is $ 88 comma 000. Th
Ierofanga [76]

Answer:

Warranty Expense       (Debit)   $3,960

Warranty Liability                                        (Credit) $3,960

Explanation:

The principle we apply while making entries for standard warranty is this:

The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>

<em />

In our question, 4.5% is the estimated warranty expense.

The company then sets off the estimated warranty expense (Debit)

(<em>4.5% * $88,000 = $3,960</em>)

with the warranty liability (Credit) to entertain any claims in future.

3 0
3 years ago
ou manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%.
serg [7]

Answer:

Reward to volatility ratio = 0.71

Explanation:

Given the expected risk premium = 10%

Standard deviation = 14%

The rate on treasury bills = 6%

The investment amount  that the client chooses to invest  = $60000

Expected return of equity = the expected risk premium  + The rate on treasury bills

Expected return of equity = 10% + 6% = 16%

Standard deviatin = 14%

Reward to volatility ratio = (expected return - risk free rate) /standard deviation

Reward to voltality ratio = (16% -6%)/14%

Reward to voltality ratio = 0.71

4 0
3 years ago
When there is allocative efficiency in a market, the buyers' maximum willingness to pay for the last unit traded is equal to the
VashaNatasha [74]

<em>That answer is A. True</em>

5 0
3 years ago
Read 2 more answers
The sources of customer expectations are market-controlled factors such as:
Volgvan
I think the answer is D) Sales promises
5 0
3 years ago
Given the following data, what is cost of goods sold as determined by the FIFO method?
Andrei [34K]

Answer:

The answer is D. $1,830

Explanation:

FIFO means First in First out.

It is one of the inventory methods along with LIFO(Last in First out), average weighted cost and specific identification.

FIFO literally means the inventory bought first will be the first to be sold. Leaving the last inventories bought as the ending inventory.

In this question, Cost of Sales according to FIFO is:

250 units x $6 = $1,500

30 units at $11 = $330

Total =. $1,830

Therefore, the cost of sales under this method is $1,830

8 0
3 years ago
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