because of the relationship between net capital outflow and net exports, the level of net capital outflow at the equilibrium real interest rate implies that the economy is experiencing

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Answer 1

Based on the relationship between net capital outflow and net exports, it can be illustrated that the economy is experiencing a balanced trade.

A balanced trade simply means when the imports that are in the economy are equal to the exports. This can be achieved through inflation control.

From the complete information, the relationship between net capital outflow and net exports can be depicted as:

C + I + G + X - M = C + S + T

(I - S) + (G - T) = (M - X)

Assuming the balanced budget is I - S = 0, it implies that M - X = 0 and this is a condition for a balanced budget.

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Related Questions

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n):

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Companies do invest in foreign firms for profits. It was an example of a Foreign direct investments.

Foreign direct investments (FDI) are commonly referred to as substantial investments that company do engage into a foreign way.

It is known to be a stage of cross-border investment where investor resident in one economy set up a long interest in and a good extent of influence over an enterprise resident in another economy.

It often help the economic problems of developing countries and also boast forward internal policy reforms.

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the two conflicting tendencies that a firm has in an oligopolistic industry are

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cooperate to maximize joint profits and the incentive to cheat on the agreement in order to increase the firm"s share of the profit.

Legal Application
13. Juan was vacationing at a Mexican resort when he lost a valuable necklace. He put a notice in
the local newspaper that promised a $500 reward for finding and returning the necklace.
Because Juan had to leave the resort two days later, he included his home address and phone
number. Two months later, Mia found his necklace and contacted him. Juan told her he would
give her only $300 for returning
the necklace since he had to wait so long for it. Can Juan
revoke his $500 offer for this reason? Explain your answer.

need help with this one

Answers

Juan cannot revoke his offer of $ 500 for this reason because in his ad he did not establish a time limit on finding and returning the necklace.

Juan established an offer for whoever finds his necklace with specific conditions and a retribution value of $ 500. Once a person reads the ad and looks for the necklace and finds it, it can be inferred that he accepted the agreement, so Juan cannot change his offer from $ 500 to $ 300.

If Juan had the intention of lowering the amount of compensation money for whoever found his necklace after a while, he must have expressed this in the advertisement that he published. Therefore, Juan must pay $ 500 for his necklace.

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which of the following occurs when a real estate agent or buyer persuades an owner to sell their property at a deflated amount, based on the notion that other houses in the neighborhood are being acquired by individuals of another race or class?

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Blockbusting is known to occur when real estate agent persuades the owner to sell its property at a deflated amount.

Blockbusting is also referred to as panic selling.

Blockbusting is referred to as illegal practice where a buyer or estate agent convinces homeowners to sell their property below the fair market value by scaring them of false facts..

Hence, term called "Blockbusting" is known to occur when real estate agent persuades the owner to sell its property at a deflated amount.

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A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be:

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Based on the information given the number of shares outstanding after the split will be: 160,000 shares.

Using this formula

Outstanding shares=Current shares  outstanding × Number of the split

Where:

Current shares  outstanding =40,000 shares

Number of the split =4

Let plug in the formula

Outstanding shares=40,000 shares×4

Outstanding shares=160,000 shares

Inconclusion the number of shares outstanding after the split will be: 160,000 shares.

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the discovery of a large amount of previously-undiscovered oil in the u.s. would shift

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What will happen if there is discovery of a large amount of previously-undiscovered oil in the u.s. is that :

In long-run aggregate-supply curve to the right.

For aggregate supply curve shifts to the right, it can be deduced that at every price level, there is a production of higher quantity of real GDP.

This is usually referred to as  positive supply shock in economics.

Therefore, aggregate-supply curve to the right in the long run.

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'The failure or success of any business depends on marketing management '. Do you agree to this statement? Give your arguments.​

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Answer:

Yes

Explanation:

Because if the marketing managment wasn't strong the business will fail but if the marketing managment is strong preety sure it will be successful

how much will I need to save per month to have $600 by the end of one year?​

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I think the answer is $50 :)

what are some of the industries which will be impacted by the application of quantum computing, as discussed in the prep material?

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Some of the industries that are going to be impacted by the application of quantum computing includes:

The finance industry The energy industryPower sectorTransportationAerospace and Automotive industryPharmaceuticalsCyber security

Quantum computing can be described as a computational type that has to do with the usage of the collective abilities of quantum states to carry out calculations.

Quantum computers are used to carry out these computations. What is used to carry out the computations are:

superposition, interference, and entanglement.

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True or false: Adams, Inc. has found that their managers are reluctant to replace old equipment with new, updated equipment. To stop this practice, Adams should compute ROI using assets' net book values.

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Answer: False

Explanation:

According to the given scenario, the given statement is false as net book value discourages equipment replacement.

What is meant by net book value?

The historical cost of an asset, less any sums deducted for depreciation, amortization, or depletion, is its net book value. The requirement that assets be reported at their market worth is a byproduct of fair value reporting. Several of the financial reporting rules mandated by US GAAP are emphasized by the fair value concept. "An asset's selling price agreed upon by a willing buyer and seller, presuming both parties are knowledgeable and join the transaction freely," is what fair value reporting refers to.

When revealing the worth of property, plant, and equipment, NBV is frequently utilized (PPE). This indicates that it is diminished as assets are amortized or depreciated. It is based on the notion that assets depreciate slightly over time as a result of use.

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Implementing the closure process includes several _______ activities, including getting delivery acceptance from the customer.

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The implementation phase is simply known as the stage where a person along with one's project team actually do the project work to produce the deliverables. Implementing the closure process includes several wrap up activities, including getting delivery acceptance from the customer.

The implementation phase in any closure process entails putting the project plan into action.

The project manager often coordinate and direct project resources to align with the objectives of the project plan.

The closing phase of project management is known as the final phase of the project lifecycle.

This process makes sure that work is completed based on to the project plan and scope.

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