Question
In: Economics
Which of the following statements is correct? Select one: a. An increase in government spending in...
Which of the following statements is correct?
Select one:
a. An increase in government spending in a small open economy causes currency depreciation
b. An increase in domestic taxes in a small open economy causes a decrease in the real interest rate
c. An increase in taxes in a small open economy causes currency depreciation
d. An increase in domestic physical capital in a small open economy causes an increase in the real interest rate.
Solutions
Expert Solution
Option A is correct.
Explanation: An increase in Government spending in small economy causes currency depreciation. When Government spending increases i.e.by using fiscal and monetary measures, income of the people of the domestic country increases and demand for imported goods and services also increases which results into increase in value of foreign currency and depreciation in the value of domestic currency.
Other options b,c and d are incorrect as they are giving incorrect view about small economy, domestic currency etc.
Rahul Sunny answered 2 years agoRelated Solutions
Which of the following statements is (are) correct? Select one: A. A strong demand increase together...
Which of the following statements is (are) correct?
Select one:
A. A strong demand increase together with a weaker supply
decrease would necessarily result in a higher price and an increase
in equilibrium quantity.
B. A weak demand decrease together with a stronger supply
increase would necessarily result in a lower price and an increase
in equilibrium quantity.
C. A weak demand increase together with a stronger supply
increase would necessarily result in a lower price and an increase
in...
47. Which of the following statements are correct? Select which option is correct. Select one or...
47. Which of the following statements are correct?
Select which option is correct.
Select one or more:
The level of professional skepticism can be reduced where the
auditor has past experience with the entity indicating the honesty
and integrity of management.
The level of professional skepticism needs to be maintained
throughout the whole engagement.
Professional skepticism implies an expectation of fraud or
error, so is a biased viewpoint.
Professional skepticism is not important in considering
management's explanations for unusual trends...
Which of the following statements is correct? Select one: a. A line of credit is an...
Which of the following statements is correct?
Select one:
a. A line of credit is an agreement between a bank and a
customer under which the bank guarantees the customer a fixed
dollar amount of loan.
b. Banks issue commercial paper for raising funds for long
periods
c. Securitisation of loans reduces banks’ capital
requirements.
d. The principal source of funds for banks is through the issue
of debt securities.
Which of the following statements are correct (Select all that apply): Select one or more: A....
Which of the following statements are correct (Select all
that apply):
Select one or more:
A. An income statement reports on financing activities.
B. A balance sheet reports on investing and financing
activities.
C. The statement of cash flows reports on cash flows from
operating, investing, and financing activities over a period of
time.
D. A balance sheet reports on a company's assets and liabilities
over a period of time.
E. The statement of equity reports on changes in the...
Which of the following statements are correct (Select all that apply): Select one or more: A....
Which of the following statements are correct (Select all that
apply): Select one or more: A. A balance sheet reports on investing
and financing activities. B. An income statement reports on
financing activities. C. The statement of equity reports on changes
in the accounts that make up equity. D. The statement of cash flows
reports on cash flows from operating, investing, and financing
activities over a period of time. E. A balance sheet reports on a
company's assets and liabilities...
Which of the following statements is MOST CORRECT? Select one: a. It is easier to transfer...
Which of the following statements is MOST CORRECT?
Select one:
a. It is easier to transfer one's ownership interest in a
partnership than in a corporation.
b. Although stockholders of the corporation are insulated by
limited legal liability, the legal status of the corporation does
not protect the firms? managers in the same way.
c. One of the disadvantages of the corporate form of
organization is that it has double taxation.
d. In part due to limited liability and ease...
Which of the following statements is NOT correct? Select one or more: a. A balance sheet...
Which of the following statements is NOT correct?
Select one or more:
a. A balance sheet reports on a company’s assets and liabilities
over a period of time.
b. The statement of equity reports on changes in the accounts
that make up equity
c. The statement of cash flows reports on cash flows from
operating, investing, and financing activities over a period of
time.
d. A balance sheet reports on resources and the claim of
resources at a point of...
Which of the following statements about the cost of capital is CORRECT ? Select one: a....
Which of the following statements about the cost of capital is
CORRECT ? Select one:
a. Both the cost of debt and equity financing will decrease when
a nuclear plant company encounters a ban on nuclear power
generation in certain states.
b. Both the cost of debt and equity financing will decrease when
a firm increases its debt/asset ratio.
c. Both the cost of debt and equity financing will decrease when
a firm expands into a risky new area.
d....
Which of the following statements is CORRECT? Select one: a. Even if companies are required to...
Which of the following statements is CORRECT?
Select one:
a. Even if companies are required to follow GAAP, two firms in
exactly the same operating situation might not have exactly the
same financial statement.
b. If a firm follows generally accepted accounting principles
(GAAP), then its reported net income will be identical to its
reported net cash flow.
c. The balance sheet shows us the firm’s financial situation
over a period of time.
d. The numbers shown on balance sheets...
Which of the following statements is correct for primates in general? Select one: a. Species that...
Which of the following statements is correct for primates in
general?
Select one:
a. Species that are pair-bonded have the minimum degree of
sexual dimorphism in body size.
b. Multimale, multifemale groups tend to have a higher degree of
sexual dimorphism in body size than one-male, multifemale
groups.
c. Multimale, multifemale groups with polygynandry are not
sexually dimorphic in body size.
d. One-male, multifemale polygynous groups have less sexual
dimorphism in body size relative to pair-bonded species.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please type, I will rate you well. Thank you. In Linux: Identify three commands that use...
- If a country such as Malaysia scores much higher than the United States on Power Distance...
- Debby’s Dance Studios is considering the purchase of new sound equipment that will enhance the popularity...
- Cooley Landscaping needs to borrow $32,000 for a new front-end dirt loader. The bank is willing...
- .You own a bond that pays $120 in annual interest with a $1,000 par value. It...
- Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He...
- Exercise 1. Rectangle, Circle and Square Write three Python classes named Rectangle constructed by a length...
ADVERTISEMENT