Answer:
= the IS curve shifts right and the
economy moves along the LM curve
Explanation:
= the IS curve shifts right and the
economy moves along the LM curve= the IS curve shifts right and the
economy moves along the LM curve= the IS curve shifts right and the
economy moves along the LM curve
Answer:
Option (d) is correct.
Explanation:
Given that,
Inventory sold to Alberta, Inc. on account = $5,800
Cost of goods sold = $4,000
The journal entries are as follows:
(i) On October 1,
Accounts receivable A/c Dr. $5,800
To sales A/c $5,800
(To record the credit sale of inventory)
(ii) On October 1,
Cost of goods sold A/c Dr. $4,000
To Merchandise inventory A/c $4,000
(To record the cost of goods sold)
Answer:
A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa
A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.
Explanation:
Real word example of change in demand :
Changing Tastes or Preferences
From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.
Simply put it this way> Change in quantity demanded : Price change, quantity demanded change
Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference
The strategy used by president Roosevelt to restore America's confidence in government and the private banking system was that, he reassured fireside talks on the radio.
Roosevelt fought to expand the role of the federal government in the nation's economy, and also embraced Keynesian economic policies. He also implemented a series of projects and programs called the New Deal to stabilize the economy.
Roosevelt called his radio talks about issues of public concern as fireside talks. These talks made Americans feel as if President Roosevelt was talking directly to them. He continued to use fireside talks throughout his presidency to address the fears and concerns of the Americans
Hence, these talks gave confidence to the American people to overcome their fears.
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The expected return on the common stock should decrease.
To calculate the new expected return on the common stock, we need to calculate the new value of the common stock and debt. The new value of the common stock is $64 million + $16 million = $80 million. The value of the debt is reduced by $16 million to $20 million.
The new expected return on the common stock is 16.6% * ($80 million/$96 million) = 15.63%.
Therefore, the expected return on the common stock should decrease from 16.6% to 15.63%.
A security that symbolises ownership in a firm is called common stock. Common stock owners choose the board of directors and cast ballots for corporate rules. Long-term rates of return are often higher with this type of stock ownership.
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