Suppose a New Technology Is Developed That Increases Investment Demand

question 114

Essay

Suppose a new technology is developed that increases investment demand in both a closed economy and in a small open economy that are in other ways identical. Holding other factors constant, will the quantity of investment spending increase more in the closed economy or in the small open economy? Explain. Assume prices are flexible and that factors of production are fully employed in both economies. Assume there is perfect capital mobility for the small open economy.

Grasp the concept and application of zero-based budgeting.

Analyze and prepare production budgets based on sales forecasts and inventory requirements.

Calculate cash collections and understand the impact of credit sales on cash flow.

Understand how budgetary planning and control contributes to a company’s financial health.

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Definitions:

Primitive Side

Primitive Side refers to the basic or instinctual part of human nature, often associated with innate drives, behaviors, or reactions that derive from our ancestral or evolutionary past.

Personality

Personality is the combination of thoughts, emotion patterns, and behaviors uniquely exhibited by an individual, distinguishing one person from another.

Source Traits

The more basic traits that underlie the surface traits, forming the core of personality.

Raymond Cattell

A British and American psychologist known for his psychometric research into intrapersonal psychological structure and the influential 16 personality factors model.