forrester company is considering buying new equipment that would increase monthly fixed costs from $160,000 to $190,000 and would decrease the current variable costs of $80 by $10 per unit. the selling price of $140 is not expected to change. forrester's current break-even sales are $440,000 and current break-even units are 10,200. if forrester purchases this new equipment, the revised contribution margin ratio would be:

Answers

Answer 1

The revised contribution margin ratio would be 0.40.

new BEP in units = 3,750

Contribution Margin Ratio 0.40

The variable cost decrease by $10 to $60 from 70

The fixed cost increase by 30,000 to $150,000 from $120,000

sales remains at $100

[tex]\frac{Fixed cost}{Contribution margin} =break even point units[/tex]

[tex]\frac{Contribution margin}{Sales Revenue} =Contribution margin ratio[/tex]

[tex]Sales revenue- Variable Cost=Contribution Margin[/tex]

100 - 60 = 40 CM Each units contribution is $40

40/100 =  0.40 CMR for each dolalr of sales 40 cents are contribution

150,000/40 = 3,750 by selling 3,750 the company can afford to pay their fixed cost.

The difference between a company's sales and variable costs, represented as a percentage, is the contribution margin ratio. The total income that can be used to cover fixed costs and turn a profit is represented by an entity's total margin.

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Related Questions

what is the profit maximization condition for a monopoly? where marginal cost is minimized where total revenues are maximized where price equals marginal cost where marginal revenue equals marginal cost g

Answers

A critical quality of a monopolist firm is that it's a benefit maximiser. A monopolistic market has no rivalry, meaning the monopolist controls the cost and amount requested. The degree of result that boosts a restraining infrastructure's benefit is the point at which the peripheral expense rises to the minimal income.

What is the condition for benefit augmentation?

A chief expands benefit when the worth of the last unit of item (peripheral income) rises to the expense of creating the last unit of creation (minimal expense).

Is benefit generally augmented where Mr MC?

This is otherwise called the extra income "at the edge." Consequently, benefit is amplified when minimal expense rises to negligible income which is equivalent to saying when peripheral benefit approaches zero.

What is benefit amplification give model?

Instances of benefit augmentations like this include: Find less expensive unrefined components than those at present utilized. Find a provider that offers better rates for stock buys. Find item sources with lower transporting expenses. Decrease work costs.

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you find a zero coupon bond with a par value of $10,000 and 18 years to maturity. the yield to maturity on this bond is 5 percent. assume semiannual compounding periods. what is the dollar price of the bond?(do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

The value of the zero coupon bond is 4156.27

At maturity, a zero-coupon bond is redeemed for its face value. The bond does not pay any more interest payments aside from that. Instead, the bond usually trades at a significant discount to its face value.

Par value of the bond = $10,000

Years to maturity = 18 years

Yield to maturity rate = 5%

Compounding semi-annually

Using the formula to calculate the price of the bond:

Zero coupon bond = F/(1 + r)^T

where F = face value/par value

r = rate of yield

t = time in years

Substituting the values in the formula, we get:

Zero coupon bond = 10000/(1 + 5%)^18

= 10000/(1.05)^18

= 10000/2.406

= 4156.27

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in an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expenditure equals $325 billion, investment equals $510 billion, and net capital outflow equals $225 billion. what is national saving? a. $1,390 billion b. $225 billion c. $735 billion d. $510 billion

Answers

The national saving is $225 billion as the consumption exceeds the savings in an open economy.

What is Gross Domestic Product?

The market worth of all the finished goods and services that nations produce and sell in a certain time period is measured in dollars by their gross domestic product (GDP). This measurement is frequently reviewed before being regarded as a valid indicator due to its subjective and complicated character and can be gained by economic growth propering the economy.  

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What does a ""u"" stand for on a credit report? what does it mean? is it concerning? does a ""u"" appear on john’s report?.

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The “U” for your credit score file stands for “unclassified,” which means that the account hadn't been updated on the time the record was pulled. it is certainly one of many repute codes that could seem subsequent to an account on your credit report.

An unclassified document has in no way contained categorized records. Declassified files originally contained categorized records that changed into either eliminated or redacted, or the facts changed into decided to no longer require protection beneath E.O. 13526, rendering the file unclassified.

An unclassified misdemeanor is the name given to a misdemeanor crime that does not fall into a specific class of misdemeanor offenses, including a class B misdemeanor or a misdemeanor inside the 2nd diploma.

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Answer:

Means unclassified, that the report hasn't been updated, or if the account is new. It's not concerning. And there is no "U" on John's report.

Explanation:

That's what I put as my answer for the class, hope it helps :)

which two industries are significantly influenced by laws regulating product purity and labeling? multiple select question. pharmaceuticals automobiles technology food

Answers

Food and pharmaceuticals are the two industors that are known to be affected by the laws that have to do with purity and labeling.

What is labeling?

This is the term that is used to refer to the fact that the items that are to be consumed by people are well tagged so that people would be able to read it properly.

This would help to prevent certain incidents. The FDA is the body that is responsible for the regulations that have to do with foods and drugs This is so that people would not have to take in products that are wrong or unhygienic for them.

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what does beworks do and how is it different from typical consulting firm? please visit beworks website. what is behavioral economics? although we covered this in class, do your own research to provide details on behavioral economics.

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The study of how people's economic decisions affect market prices, returns, and resource allocation is known as behavioral economics.

What is be works' function?

We comprehend human behavior and alter it for the better.

Using science, we reveal the unseen factors that influence everyday behavior and develop innovative solutions to today's issues and foresee the challenges of tomorrow.

What is the work of behavioral economists?

Based on psychology and market research, behavioral economic consultants work to comprehend their clients' requirements and create individual business plans and solutions. You can choose to work as a consultant in a specialized field, such as education or health care, and either work for yourself or for a private company.

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what is the effect on the stock price of a company that announces it earned higher-than-expected quarterly profits? the stock price will likely go down because analysts do not like unexpected surprises from company financial reporting. the stock price will likely go up because the announcement suggests that the company is undervalued. the stock price will likely go up because it's a clear indication that the financial health of the company is strong. the effect depends on what generated the profits and how analysts forecast this information.

Answers

The effect on the stock price, for  a company that announces it earned higher-than-expected quarterly profits, is that "The stock price will likely go down because analysts do not like unexpected surprises from company financial reporting." Option A

This is further explained below.

What is the stock price?

Generally, The cost of purchasing one individual share out of a company's total number of equity shares that are available for sale is referred to as the share price

In terms that are more understandable to the average person, the price of a share of stock is the most money that someone is prepared to pay for that share or the least money that it can be acquired for.

In conclusion, "The stock price will likely go down because analysts do not like unexpected surprises from company financial reporting," is what will happen to the stock price of a company that announces it earned higher-than-expected quarterly profits; this is the effect that will have on the company's stock price. Alternative A

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the action that eventually led to polaroid's bankruptcy was their major strategic shift into the digital camera market. question 14 options: true false

Answers

False .  Polaroid was forced to declare bankruptcy after 30 years of strong financial performance.

Why did polaroid have to declare bankruptcy ?

Patent infringements and bad corporate governance were to blame for Polaroid's inability to adjust quickly. Around the year 2000, the business concepts that had sustained their success since its foundation in 1937 began to crumble. The failure of Polaroid was mostly caused by two factors: a flawed business strategy and aversion to becoming a leader in their industry. Given all of their early work on digital photography, Polaroid may have controlled the industry today.

But very early on, failure anxiety set up within the firm. If you want to continue being successful, you can't let business failure scare you too much. The ability to diversify, innovate, and understand the market are crucial competencies.

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raven company has a target income of $70,700. the contribution margin ratio is 25%. what amount of dollar sales must be achieved to reach the goal if fixed costs are $37,300?

Answers

The amount of dollar sales that must be achieved to reach the goal is $432,000 if the fixed costs are $37,300

To determine the amount of dollar sales to be achieved to reach the goal, we first calculate the total contribution required. The contribution required in this case will be the sum of the target income and the fixed cost. Therefore;

contribution required = Target income + Fixed cost

contribution required = $37,300 + $70,700

contribution required = $108,000

Now the amount of dollar sales required can be determined by using the following formula of contribution margin ratio;

contribution margin ratio = Contribution margin / Sales

As the contribution margin ratio is given to be 25%, therefore;

25/100 = 108,000 ÷ Sales

0.25 × Sales = 108,000

Sales = 108,000 ÷ 0.25

Sales = $432,000

Therefore $432,000 is calculated to be the amount of dollar sales required to reach the goal.

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when the yield curve is upward-sloping, then: multiple choice short-maturity bonds offer the highest coupon rates. long-maturity bonds are priced above par value. short-maturity bonds yield less than long-maturity bonds. long-maturity bonds increase in price when interest rates increase.

Answers

When the yield curve is upward sloping then Short-maturity bonds yield less than long-maturity bonds.

A bond in financing may be defined as the money raised by the borrowers from the investors who are willing and are capable of lending them money. A bond may be private or governmental. The bond is a symbol of the trust between the borrower and investor. Bonds can be bought or sold whenever they get matured. Yield curve may be defined as the graph plotted showing the relation between the interest rates of the bonds which have equal credit quality but different maturity period. This curve shows the risk which a investor poses while issuing a bond to a borrower. This curve shows relation between different bonds whether short term or long term.

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on september 1, your calendar year company rents a machine to another firm for $24,000 a year. as of december 31, $17,000 has been received and recorded in rent revenue. what adjusting entry do you record at year-end?

Answers

Annual rent revenue = $24,000

Rent revenue for 4 months from September to December = 24,000 x 4/12

                                                                                                = $8,000

Rent revenue has been credited by $15,000. Thus, adjusting the entry on December 31 will be as under:

Journal

Dec. 31 Rent revenue 7,000  

        Unearned rent revenue   7,000

Revenue is the total quantity of financial gain generated by the sale smarts|of products} or services concerning the company's primary operations. Revenue, additionally referred to as gross sales, is usually named because the "top line" as a result of it sits at the highest of the income statement. When examining revenue vs income you must recognize that “revenue” refers to the entire amount of cash an organization generates before removing any expenses.“Income”, on the opposite hand, is up to revenues minus the prices of doing business, equivalent to depreciation, interest, taxes, and other expenses. Revenue and profit are each good signs for your business, but they're not interchangeable terms. each represents a very important thanks to perceive your business. Revenue describes income generated through business operations, whereas profit describes lucre when deducting expenses from earnings.

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when a restaurant customer decides to fill out a customer satisfaction survey to complain about having to wait an hour for her food that was cold, this is an example of .

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Self selection bias, The issue that frequently arises when survey respondents are given complete freedom to determine whether or not they want to participate in a survey is self-selection bias.

What is self selection bias ?

The issue that frequently arises when survey respondents are given complete freedom to determine whether or not they want to participate in a survey is self-selection bias.

When people choose to participate in a survey by themselves, self-selection bias emerges. Imagine, for instance, that a local government mails a survey to every citizen of the community asking them whether or not they believe a new intersection should be built in the centre of the town.

In statistics, self-selection bias develops whenever individuals choose to join a group for themselves, leading to a biased sample with nonprobability sampling.

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the car lot is a large car dealership. it could sell its cars for $500 and give customers a lifetime guarantee, but based on the marketing concept, why shouldn't it do this?

Answers

It shouldn't do this since the business should balance meeting its consumers' needs with accomplishing its organizational goals.

What is the marketing concept's significance to consumers?

By increasing profit through higher sales, marketing concepts not only help marketers beat the competition but also are tied to the method they use to appeal to clients.

Is the notion that a business must work to meet customers' requirements even as it tries to meet its own aims one word?

The marketing concept is fascinated with the notion of meeting customer demands through the product as a remedy for the customer's issue (needs). The Marketing Concept is a key shift in how businesses are organized today and lays the groundwork for gaining a competitive edge.

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gilchrist corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine-hours for the upcoming year at 35,900 machine-hours. the estimated variable manufacturing overhead was $4.80 per machine-hour and the estimated total fixed manufacturing overhead was $945,606. the predetermined overhead rate for the recently completed year was closest to: multiple choice $31.14 per machine-hour $30.14 per machine-hour $4.80 per machine-hour $26.34 per machine-hour

Answers

Predetermined manufacturing overhead rate= $31.14 per machine hour.

Estimated the machine-hours= 35,900

The estimated variable manufacturing overhead was $4.80 per machine-hour. The estimated total fixed manufacturing overhead was $945,606.

How to calculate predetermined overhead rate?

To calculate the predetermined overhead rate, we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate=(945,606/35,900) +$4.80

Predetermined manufacturing overhead rate= $31.14 per machine hour

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Identify and explain two possible reasons why some ministers want to
privatize some businesses in the public sector.

Answers

The ministers seek to privatize some public sector operations because it would lead to stronger management infrastructure and a more technical and specialized personnel. Operating outside of political hierarchies and through commercial organizations would be more effective.

Explanation:

.Private businesses can provide a larger range of experience in service provision in line with the international trading climate.

.The government sectors now need to look more closely at opportunities in the cutthroat world of trade due to the changes in the dynamic markets.

.The privatization of the commercial sectors will increase the effectiveness of this.

.More money is available to invest in the infrastructure that supports trade is it necessary to have the public sector.

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g in the solow growth model, increases in capital output and the amount of output used to replace depreciating capital. a) increase; increase b) decrease; increase c) decrease; decrease d) increase; decrease

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In the Solow growth model, if investment is less than depreciation, the capital stock will decrease and output will decrease until the steady state is attained.

If investment is less than depreciation, the capital stock will contract and output will fall. A greater rate of consumption per worker is referred to as the "golden rule" of capital stock.

The Solow Growth Model's repercussions Long-term growth is nonexistent. The Solow Growth Model predicts conditional convergence if countries have the same g (population growth rate), s (savings rate), and d (capital depreciation rate), then they have the same steady state and will converge.

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Complete Question:

In the Solow growth model, if investment is less than depreciation, the capital stock will ______ and output will ______ until the steady state is attained. decrease; increase decrease; decrease increase; increase increase; decrease

television commercials for halo laundry detergent are aired several times a day, on various cable networks, throughout the year. advertisers of halo believe that this will serve as a constant reminder of the brand to the consumers. media planners of halo are likely to be using a(n) scheduling method.

Answers

Media planners of halo are likely to be using a continuity scheduling method.

What is continuity marketing?

A way of offering consumers products or services that focuses on direct marketing and lasts forever is known as continuity marketing. This relationship, also known as auto-replenishment, lasts until the client notifies the marketer that they no longer want it. The basic idea is that a buyer places an initial order, either online or through a mail order offer. This original product typically has a steep discount and serves as a loss leader. A further shipment will be sent to the customer within the specified time frame. After that, further supplies would keep coming at regular intervals. The marketer will make the decision on the client's behalf based on the customer's prior selections if the customer has not specified the specific product they wish to acquire.

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in its first year of business, laker corporation had sales of $2,150,000 and cost of goods sold of $1,275,000. laker expects returns in the following year to equal 5% of sales and 5% of cost of goods sold. the adjusting entry or entries to record the expected sales returns is (are):

Answers

The Sales Returns and Allowances entry or entries are used to adjust for the anticipated sales returns. 160,000 Inventory Returns, 160,000 Sales Refund Due around 96,000 sold items cost was 96,000.

A sales return is an adjustment to sales resulting from the actual return of goods by a consumer who had previously purchased them from the Inventory Returns company. The account "Sales Returns and Allowances" is frequently used to record it.

Typically, a sales return is entered under "Sales Returns and Allowances." The income statement shows this account as a debit from "Sales" (or Gross Sales).

Actual physical returns of the product are required for sales returns, and Inventory Returns the consumer will receive a refund or credit to their account in exchange. Contrarily, a sales allowance occurs when the customer sales returns consents to accept the item for less than it was originally sold for. Both instances are classified as sales adjustments and are listed under "Sales Returns and Allowances."

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discuss the major barriers to entry into an industry. explain how each barrier can foster either monopoly or oligopoly. which barriers, if any, do you feel give rise to monopoly that is socially justifiable?

Answers

There are five major barriers to enter in to any industry.

1) Economies of scale – On occasion, the market prohibits the operation of more than one firm due to cost advantages brought about by economies of scale. This could result in a monopoly.

2) High fixed costs – Since the majority of manufacturing required some fixed factors, the new company might not have the necessary funds.

3)Patents: When a company has patent rights for a certain class of goods, it can monopolize the market.

4)Ownership of specific input is required since outcome requires input. However, there are situations when a single company is the only owner of an input needed to make an output. Additionally, a market monopoly can result from this.

5) Competition from others - Already existing businesses will compete with the new entry. However, the performance of that competing company depends on the state of the market.

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In the ________ activity of scm, supply chain managers develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring the shipped materials to manufacturing facilities, and authorizing supplier payments.

Answers

Supply chain managers create procedures for managing their inventory of goods and services in the source activity of SCM. These procedures include receiving and validating shipments, moving the sent items to production facilities, and approving supplier payments.

What jobs do supply chain managers have?

The five primary elements of supply chain management are planning, procuring raw materials, production, delivery, and returns. The planning phase involves developing a comprehensive supply chain strategy, while the other four components concentrate on the prerequisites for carrying out that plan.

Sourcing is the process of buying goods and services from suppliers who will do so in the most economical and effective way possible. Suppliers are required to follow a set of guidelines in order to guarantee that the company delivers high-quality goods to the consumer.

Supply chain managers create procedures for managing their inventory of goods and services in the source activity of SCM. These procedures include receiving and validating shipments, moving the sent items to production facilities, and approving supplier payments.

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us firms that issue securities in the us have to comply with sec regulations. if these firms issue securities in the eurobond market, an advantage is limited blank requirements, as they do not have to provide as much information. multiple choice question. disclosure taxation political economic

Answers

Politics and economics are both involved in the topic of taxes. Political leaders have implemented a variety of tax changes, such as lowering (or raising) tax rates, altering the definition of taxable income, enacting new taxes on particular goods, and so forth, to further their political objectives.

Explain about the taxation political economic?

A taxation authority, typically a government, levying or imposing a financial obligation on its inhabitants or residents is known as taxing them. Since ancient times, paying taxes to governments or officials has been a fundamental aspect of civilization.

Specific tax preferences can have an impact on how economic resources are allocated, whereas high marginal tax rates can discourage work, saving, investing, and innovation. Tax cuts, however, can also reduce long-term economic development by raising deficits.

For instance, the highest payroll taxes in the United States are 2.9% for Medicare and 12.4% for Social Security, totaling a 15.3% tax rate. In this instance, the employer pays half of the payroll taxes, or 7.65% of the tax rate.

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paltrowski company issued 1 million shares of no-par common stock with a stated value of $2. the issue price was $54 per share. which journal entry is prepared?

Answers

The journal entry that is prepared is debit Cash $50 million, credit Common Stock $2 million, and credit Paid in Capital in Excess of Stated Value Common $48 million.

What is the balance sheet?

The balance sheet contains the stockholder's equity. It is said to be the sum of the company's remaining assets after all obligations have been paid. Common share and retained earnings balances are included in shareholder equity.

Debit Cash = $54 million,

Credit Common Stock = $2 million,

Credit Paid-in Capital in Excess of Stated Value (Common) = $52 million.

So, the journal entry will be

Debit Cash $50 million, credit Common Stock $2 million, and credit Paid in Capital Exceeding Par Common $48 million.

The issue price divided by the number of shares equals market value. Market value is equal to $50 divided by one million, which equals $50 million.

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The complete question is:

"Paltrowski Company issued 1 million shares of no par common stock with a stated value of $2 per share. The issue price was $50 per share.

Which journal entry is prepared?

A. debit Cash $50 million, credit Common Stock $2 million and credit Paid in Capital in Excess of Par Common $48 million

B. debit Cash $50 million, credit Common Stock $2 million and credit Paid in Capital in Excess of Stated Value Common $48 million

C. debit Cash $50 million and credit Common Stock $50 million

D. debit Cash $50 million and credit Retained Earnings $50 million"

A share of stock with a beta of 0. 75 now sells for $50. Investors expect the stock to pay a year-end dividend of $2. The t-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $52 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? what will investors do? at what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today?.

Answers

What the investors will do depends on whether the actual return will be higher, lower or the same as the required return (Opportunity cost of capital) .

What is Equilibrium in business?When market supply and demand are in balance, prices become steady. This is known as equilibrium. In general, a surplus of goods or services leads to lower prices, which increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.The holding period return, which is (earnings (dividends) + (ending stock price - beginning stock price))/beginning stock price = (2 + (52 - 50))/50 = 4/50 = 8%, can be used to determine the actual return.CAPM can be used to determine the Opportunity Cost of Capital. = Risk Free Rate + beta(Market Premium) = 4% + 0.75(7%) = 9.25%The stock is a bad buy since the Opportunity Cost of Capital exceeds the Actual Return on the stock.

Investors won't buy anything.

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which of the following statements is true regarding how various decision styles impact employees? group of answer choices a democratic style results in positive attitudes a democratic style is the fastest way to make decisions a laissez-faire style results in higher performance an autocratic style results in lower performance a laissez-faire style results in positive attitudes

Answers

Positive attitudes are the product of a democratic style. The following traits are frequently found in leaders that practice democratic leadership. Leaders that practice shared leadership put their teams in charge of coming up with ideas and solutions.

This trust motivates teams to collaborate in novel ways without micromanaging, which fosters organizational creativity. Positive attitudes are the product of a democratic style. A company's top management decided that low sales would prevent them from awarding end-of-year bonuses.

It encourages an atmosphere of creativity. A creative environment is promoted by the democratic leadership style by promoting team members' invention and contribution. For instance, due to the inherent support in this style of leadership, creative professionals typically prosper under it.

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Who prioneered a manufacturing method based around the principle of take the work to the man, not the man to the work?.

Answers

The belt is boss, as one worker put it, or as Ford said in 1925, "the point is to keep everything in motion and convey the job to the man not the work to the man." The former method required 14 hours to assemble a Model T in 1913.

Explain about the manufacturing method?

 A business constructs or produces a product is through a manufacturing process. Using computers, robots, and cloud-based technologies, it can be a complex process involving a variety of machines, tools, and equipment with several levels of automation.

Manufacturing is the process of creating products—either manually or mechanically—that the company then sells to a client. Rough materials or smaller portions of a larger product are both examples of items utilized in manufacturing.

Manufacturing is the process of creating new goods from components or raw materials. Automotive businesses, bakeries, shoemakers, and tailors are all examples of manufacturing because they all produce goods rather than provide services

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Kenda needs her manager to review the memo she wrote so that she can send it out to her clients before the end of the day. what's the best way for kendra to end her email to her manager? question 1 options: a.please review the memo for any spelling or grammatical errors. b.here's the memo i want to send clients today. c.please review the memo and let me know if you have any changes by 3 p.m. today. d.do you think this looks ok?

Answers

The BEST way for Kendra to end her email to her manager is option A: Please review the memo and let me know if you have any changes by 3 p.m. today.

What do you mean of review?

A review is an opinion or analysis of something's quality. Review can also refer to going through a subject again as part of a study session or returning to something.

Note that when used as a noun and a verb, review has numerous additional meanings. A review is a critique of something, telling both its strengths as well as weaknesses.

Therefore, a book memo is an analysis of the book, or a review. A review, which is more than just a summary, presents an argument.

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brittany is traveling in germany and went to a bank to convert $200 into euros. she was concerned when she received fewer euros than she had last week when she converted the same amount of money. the teller explained that the money had been converted based on the rate that was available today for currency exchange and this rate fluctuates. what type of rate is being used in this transaction?

Answers

The rate being used is the spot exchange rate.

The spot exchange is the current exchange rate between two currencies is a spot rate in foreign exchange. It is the price that must be paid in order to finalise a currency exchange immediately. The spot exchange rate is determined by the forex market, and some nations actively control or influence this rate through tools like currency pegs. Trading opportunities in the spot market and futures, forward, and options markets are found by currency traders by monitoring spot rates.

In the given case the amount was converted at the given rate at that time. It was the price that Brittany would have paid in one currency to buy another currency at that time. This is why the deviation came in the total amount during currency exchange.

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although bangladesh and india have the same annual growth rate, their economies are much different in size. one way to explain the size difference to someone who is unfamiliar with scaling large numbers is to visualize it. india's gdp is a

Answers

India's GDP growth rate is lower than that of Bangladesh.

GDP or Gross Domestic product is defined as the final value of all the products that are produced within a country in a specified period of time or within a financial year. GDP growth rate may be an important feature to compare the economies of two countries. India and Bangladesh do not have same territorial boundary and their economies are also not equal. There are many factors to compare the economies of the two countries and the main factor is the GDP growth rate as the other factors are almost same. India is witnessing a slight increase in the GDP growth rate though the growth rates are comparatively smaller than that of Bangladesh. Covid-19 has struck the GDP of India and affected it to a very large extent and efforts are being made to recover the GDP growth rate.

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under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? when interest rates are higher than they were when the bonds were issued g when interest rates are lower than they were when the bonds were issued

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When interest rates are lower than they were when the bonds were issued a circumstance would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures. The correct option is B.

What is the goal of open market operations?

Open market operations are designed to alter the reserve balances of American banks and bring about reactionary adjustments to the current interest rates. The Fed can expand the money supply in the US by purchasing securities.

Bond prices fluctuate between increases and decreases on the open market. OMOs, therefore, have an impact on bond pricing. Bond prices and interest rates have a negative relationship. 1 Therefore, open-market purchases lower interest rates while open-market sales raise them.

Thus, the ideal selection is option B.

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if the united states raised its tariff on tires, then at the original exchange rate there would be a a. surplus in the market for foreign-currency exchange, so the real exchange rate would appreciate. b. shortage in the market for foreign-currency exchange, so the real exchange rate would depreciate. c. shortage in the market for foreign-currency exchange, so the real exchange rate would appreciate. d. surplus in the market for foreign-currency exchange, so the real exchange rate would depreciate.

Answers

The cost of a country's goods and services rises as its exchange rate rises compared to that of another. Costs for imports decrease. In the long run, this can result in a decline in exports and an increase in imports.

The value of one currency will increase as the exchange rate changes, while the value of the other currency will decrease. A currency is considered to have appreciated when its value rises. Conversely, a currency is said to have depreciated when its value falls.

Tariffs increase the cost of imports, which importers frequently pass through to consumers through increased prices and inflationary pressure.

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