Answer: 10%
Explanation:
The Equilibrium real interest rate would be the interest rate that equates the Desired savings to the desired investment for both the National and foreign economy.
Desired national saving + Foreign desired national saving = Desired national investment + Foreign desired national investment
1,200 + 1,000rw + 1,300 + 1,000rw = (1,000 - 500rw) + (1,800 - 500rw)
2,500 + 2,000rw = 2,800 - 1,000rw
2,000rw + 1,000rw = 2,800 - 2,500
3,000rw = 300
rw = 0.1
rw = 10%
Answer:
Explanation:
a)
Year percentage increase
2011 21.21162
2012 14.35054
2013 20.62696
b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to; Decline
c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X
d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.
Answer:
Receivable days are 52 days.
Explanation:
Receivable days can be found from the following formula:
Receivables days = Receivables / Credit Sales * 365
The credit sales here is $6,650,000 during the year and the average receivables days is $950,000 [(950,000 + 980,000)/2] during the year. By putting the values we have:
Receivables days = $950,000 / $6,650,000 * 365 = 52 days
So the average receivable collection days were 52 days during the year.
Answer: B : Trade deficit
If a land of Mercury had total exports of $150billion and total imports of $234billion, it had a "trade deficit".
Explanation:
Trade deficit can be termed an amount by which a country's costs of imports exceeds cost of exports. It is also known as negative balance of trade. Trade deficit is a term of trade that measures international trade.
Trade deficit is obtained by subtracting a country's export from its imports.
Mathematically :
Trade deficit = imports - exports
Trade deficit occurs when a country foreign debt is greater than what it produce for exports. Also when a country depends on another country for refinering their manufactured goods, such country will experience trade deficit.
It can be controlled by promoting constructions of refineries to process products, productions of raw materials for goods, improving exports and limiting imports.
