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causes less export more import thereby reducing the country's current account
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∙ 11y ago
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Why the increase in overhead rate should not have a negative financial impact?
An increase in overhead rate will have a negative financial impact. An increase in the overhead will result to an increase in cost, which will lead to lower income.
Does an increase in overhead rate have a negative financial impact?
Increase in overhead rate would have negative financial impact since its one of the cost under the income statement. Increased in overhead rate would lead to increase in costs, which eventually would lead to lower income. Sales - Direct material - Direct labor - Overhead = Profit
How foreign exchange improves national income?
as national income is the sum of goods and services produced within a country and income from abroad. hence increase in foreign exchange will increase the national income.
Why an exogeneously motivated decrease in exports may impact adversely on the national income?
Since exports increase a country's national income, and are determined by a number of variables, therefore an exogeneously motivated decrease (determined outside domestic control) will obviously have an adverse effect on national income.
What is induced investment?
Business investment expenditures that depend on income or production (especially national income or gross national product). An increase in national income triggers an increase in induced investment expenditures.
disadvantage of increase fuel price?
Increasing fuel prices can have several disadvantages, including: Increased cost of living: When fuel prices increase, it affects the cost of transportation, which can lead to an increase in the cost of goods and services. This can lead to a higher cost of living for consumers. Inflation: Fuel is used in many industries, including manufacturing and transportation, and an increase in fuel prices can lead to an increase in the cost of production. This can lead to inflation, which can have a negative impact on the economy. Reduced consumer spending: When fuel prices increase, consumers may have less disposable income, which can lead to reduced spending on other goods and services. This can have a negative impact on businesses that rely on consumer spending. Impact on low-income households: Higher fuel prices can have a disproportionate impact on low-income households, as they tend to spend a higher percentage of their income on fuel and transportation
Why increase in national income affect increase in standard of living?
An increase in national income affects the increase in the standard of living because an increase in income increases the standard of living. When the national income is low, people are poorer.
Why tax multiplier is negative.show graphically the negative impact of tax multiplier on income?
tax multiplier is negative because when government imposes tax, the income decreases
An increase in the standard of living results from an increase in what?
an increase in standard of living comes from increase in income. An increase in national income will increase the standard of living of the people of that nation.Income
How would an overall increase in per capita income most likely impact prices?
Prices would increase.
How do you increase the national income of a country?
More exports less inports
How do you increase national income of the country?
More exports less inports
