Answer:
Option B
Explanation:
In economics, the J-curve impact is frequently used to explain, for example, how a nation's trade balance negatively affects briefly after a depreciation of its exchange rate, then gradually recovers, and eventually exceeds its previous results.
If the currency of a country is appreciated, economists note, there may be a reverse J-curve. For importing nations, the country 's products unexpectedly become more competitive. When other countries will meet the gap at a cheaper profit, the stronger currency would weaken its advantage on exports.
According to the 'J curve effect', a weakening of the U.S. dollar would cause an initial decrease in the current account balance due to the instant effects on import and export prices. However, with time, the balance is likely to increase due to adjustments in export and import volumes. Therefore, the correct response to your question is (b) decrease; increase.
The 'J curve effect' is a theory in international economics that describes the likely effects of a currency devaluation on a country's trade balance. In specific, when the U.S. dollar weakens relative to its trading partners' currencies, it could initially cause a decrease in the current account balance. The reason is that the immediate effect of a weaker dollar is to make foreign imports more expensive and the U.S. exports less valuable, deteriorating the trade balance. However, in the longer term, the trade balance may increase in the current account balance. This is because over time, the cheaper U.S. exports become more appealing to overseas buyers and imports into the U.S. decrease due to their higher price, improving the balance.
So the answer to your question is: a weakening of the U.S. dollar relative to its trading partners' currencies would result in an initial decrease in the current account balance, followed by a subsequent increase in the current account balance. Hence, the correct option is (b) decrease; increase.
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Answer: Problem detection
Explanation: Problem detection is used in R&D, it is a techniques that asks consumers who are familiar with the product or service to ponder upon an exhaustive list of things that bothers them while using the product.
This is done to find the ideas to make creative strategies and improvements in product/service.
Problem Detection approach identifies and prioritizes the most pressing consumer concerns so that the brand they are associated with can address unmet needs that exist in the marketplace.
Answer:
journal entries to make are as shown below: DAKOTA MINING CO
question 1
Date Transaction Debit credit amount
July 23 land purchase Land account $ 4,715,000
july 23 land purchase Bank $ 4,715,000
question 2
July 25 Machine cost machine account $410,000
July 25 Machine cost bank $410,000
December 31 depletion 5 months profit $441,600
December 31 depletion mine reserve $0.92/ton
December 31 Depreciation profit $441,600
December 31, depreciation land $441,600
Explanation:
Purchase of fixed asset: the asset account usually have debit balances, so you debit the asset account and credit Dakota bank account where the money was paid out. The land account and machine accout will have the purchase cost/installation cost as debit balances(entries) respectively while Dakota Mining co bank account will be credited with the respective amounts $ 4,715,000 -land purchase and $410,000- machine cost/installation.
The depletion quantity in 5 months was given. using ratio we extrapolate the depletion quantity was a full year as 1,152,000 QTY (12/5 X 480,000)
= 1,152,000 QTY the useful life of the mine is then calculated by dividing the reserve amount by the annual production of 1,152,000 = 4.448784 yrs
depreciation annually = divide cost of land by useful life = $1.059,840
5 months depreciation = 5/12 x annual depreciation = $441,600
depletion per ton is gotten as follows: divide $441,600 by 480,000 tons mined for 5 months = 0.92/ton depletion rate
Answer:
ROI = 20.90%
Explanation:
Operating Income:
= Operating Income of Retail Division + Operating Income of Wholesale Division
= $7,500,000 + $4,000,000
= $11,500,000
Operating Assets:
= Operating Assets of Retail Division + Operating Assets of Wholesale Division
= $37,500,000 + $17,500,000
= $55,000,000
ROI = (Operating Income ÷ Operating Assets) × 100
ROI = ($11,500,000 ÷ $55,000,000) × 100
ROI = 20.90%
Answer:
$2536.232
Explanation:
The spread in this case is 30*8% = 2.4
A spread is simply gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity and the net proceeds are the amount of money the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.
The net proceeds in this case is 30-2.4 =27.6
To get the number of share we can simply divide the funds need by the net proceeds per share = 70000000/27.6 = $2536.232. Therefore the correct answer is $2536.232
The supply of money increases when the Federal Reserve purchases bonds, as this practice results in banks having more cash, which in turn increases the money supply in the economy.
The supply of money increases when the Federal Reserve purchases bonds. In this scenario, banks get cash which then translates to an increased money supply in the economy. This is called an open market operation, which is one of the tools the Federal Reserve uses to influence the supply of money and ultimately interest rates. An increase in the value of money, interest rates, or velocity does not directly increase the money supply. Rather, these factors can affect the demand for money or the speed at which money circulates in an economy.
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The supply of money increases when the Federal Reserve purchases bonds, as this inserts more money into the economy. Value increase, interest rate increase, or increased velocity do not directly increase the money supply.
The supply of money increases when the Federal Reserve purchases bonds. This is part of monetary policy used by the Federal Reserve to control inflation and the economy. When the Federal Reserve purchases bonds, it essentially creates money and puts it into the economy, increasing the total supply of money. This is in contrast to when the value of money increases, the interest rate increases, or the velocity (speed at which money changes hands) increases which don't directly increase the supply of money.
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Answer:
If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary
A 4.5% increase in marginal tax = 0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Explanation:
Tax elasticity of labor supply = 0.16
What percentage will the quantity of labor supplied increase in response to
A) $500 per person income tax rebate
percentage change in quantity supplied = (tax elasticity of supply) * (percentage change in tax rate ) If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary measure and does not have an effect the tax rate in the long run.
B) A 4.5% increase in marginal tax
change in the quantity of labor = tax elasticity * increase marginal tax
0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )