The true statement is <em>D. When </em><em>BCA</em><em> is negative, it implies that government </em><em>budget deficits</em><em> and/or part of </em><em>domestic investment </em><em>are being financed with </em><em>foreign-controlled capital</em><em>.</em>
The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.
Explanation:
National income = Y = GNP
Consumption = C
Private Investment = I
Government spending = G
Exports = X
Imports = M
Taxes = T
Therefore, the BCA = X-M = (S-1) + (T – G)
Where BCA = Balance of Current Account
Thus, the Balance of the Current Account (BCA) should be <u>positive</u> to avoid deficit-financing of government budgets.
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Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
Answer:
The correct answer is:
Selling furniture to appliance customers.
Explanation:
In this case, the company can take advantage of the fact that consumers who buy furniture for their homes are usually interested in the line of appliances. This is a very good strategy, because in this manner they will realize about the need or desire at the same time this fact will have good consequences, so that they can make a single purchase and a single shipment, giving them the feeling of saving a lot leading them to Buy more in the store. Therefore, using this strategy the company will have more cash flow in this way.
Answer:
Investors use income statements to determine the profitability of a company over time. ... This is the amount that a company would pay shareholders, per share, if the company paid out all of its net income as dividends.
Explanation: