A higher level of national income is bad from a current account point of view Select one : True Or False

Q: Answer true or false to the follwoing statement, and explain “ Purchasing Power Parity (PPP) theory…

A: Buying power parity is a method of comparing the absolute purchasing power of currencies and, to…

Q: Question: What does ROI stand for in finance? a) Return on Investment b) Risk of Inflation c)…

A: In this question, we are required to determine the full form of ROI.

Q: Statement 1: The components of other comprehensive income include changes in revaluation surplus.…

A: Lets understand basic thing about the other comprehensive income. Other comprehensive income is a…

Q: From a financial perspective, how are projects chosen when capital rationing exists? Do you think…

A: In this question, we are required to determine how projects are chosen based on capital rationing…

Q: Which of the following is not a source of informal short-term finance? *     A. Accrued wages   B…

A: Financing is an act or a process of providing funds to the business in order to operate the business…

Q: Why do we use an after-tax figure for the cost of debt but not for the cost of equity? Explain your…

A: Capital of a company is made from two main sources – debt and equity.Debt consists of liabilities…

Q: Why does balance of payments contain an account called statistical discrepancy?

A: The equilibrium of installments (BOP), otherwise referred to as equilibrium of worldwide…

Q: What is cumulative effect of changing the estimated bad debit rate

A: In accounts Bad Debt Rate or Bad Debt Ratio explains that how many debtors are likely to not pay the…

Q: Which of the following statements regarding economic capital and economic income is incorrect? (i)…

A: e (v) Explanation: e (v) is the incorrect statementEconomic income is the way for companies to…

Q: What is the view of new classical about money neutrality?

A: INTRODUCTION: Money, according to the neutrality of money theory, is a "neutral" component that has…

Q: What is capital rationing, what conditions lead toit, and how should it be dealt with?

A: Capital budgeting is a process in which capital projects are assessed in terms of their viability…

Q: Short run vs. Long Run a.Why on the long run, fiscal and monetary policies are not effective?

A: Short Run: This refers to the factor of production where capital is fixed. The time period in such a…

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: Explain the middle-income trap issue and elaborate the possible solutions to address the…

A: Traps:  There are various traps in finance and the economy, where individuals and countries can get…

Q: Is capital rationing always a bad thing? Explain

A: Capital rationing: Capital rationing is restriction bestowed upon new investments in the…

Q: If accrued liabilities are overestimated in the current period, the reported income in a following…

A: Accrued liabilities represent expenses that a company has incurred but has not yet paid as of the…

Q: what is the primary difference between hard money & soft money

A: The origins of the concepts of hard money and soft money can be traced back to the 1970s and 1980s,…

Q: What types of accounts compromise Income? and make up Net

A: Sales are subtracted from the cost of products sold, selling, overall and administrative…

Q: You want to argue against the taxation of interest income. a) Which simple interpretation of the…

A: Atkinson–Stiglitz-: The Atkinson–Stiglitz theorem is simply a theorem of public economics which says…

Q: Define the term Mixed-Dollar Analysis?

A:

Q: Why are they important for policymakers and investors, also in what situations and why do they use…

A: GDP Gross domestic product (GDP) is the measure of total value of goods and services produced within…

Q: Give an example of Mixed-Dollar Analysis?

A: Mixed-Dollar Analysis is commonly known as a currency basket that consists of different currencies…

Q: Question: What does ROI stand for in finance? a) Return on Investment b) Risk of Inflation c)…

A: In this question, we are asked to determine the full form of ROI.

Q: Which of the following is always considered part of GDP? A. incomplete goods B. government purchases…

A: The objective of the question is to identify which among the given options is always considered a…

Q: Which of the following statements is not correct? Group of answer choices A)Purchasing fixed assets…

A: A)Purchasing fixed assets using cash decreases the current ratio. Purchasing fixed asset using cash…

Q: Why would a company choose to factor itsreceivables, given that it will get less money than…

A: Sales means delivery of goods and services by the seller. It can be for cash sales or sales made on…

Q: Which of the following ratios does not use net income in its calculation?   Multiple Choice…

A: (i) Net profit margin:The formula for net profit margin is:Thus, 'Net profit margin' is an incorrect…

Q: Explain the Answer

A: Yes, it is possible for a business to have both negative accounting profit and negative economic…

Q: Using your own words, briefly (hopefully) explain: (a). What is "retained earning"? How does…

A: Profit earning is the main and basic motive of every firm or business. Businesses use these profits…

Q: What is failure of competition?

A: The question is based on the concept of economic failure of market due to imperfect situation

Q: Why is "Projecting Growth Beyond What the Capital Being Valued Will Support" considered a common…

A: Income Approach There are two different model which was incurred in the income approach.  The…

Q: REQUIRED: ANSWER THE FOLLOWING QUESTIONS IN POINT FORM • What is the difference between book value…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What are the Factors That Complicate Capital Investment Analysis

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Distinguish between hard and soft capital rationing

A: Capital rationing is allocating a given amount among the most profitable projects which can maximize…

Q: What is the equation for M & M Proposition II, without taxes, is best shown as?

A: In this question, we are required to determine the equation for the M&M Proposition.

Balance of Payments

BOP is categorized into the following three components: