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snow_tiger [21]
2 years ago
12

The U.S. government funds the federal budget deficit by Group of answer choices borrowing from large private banks at favorable

terms and low interest rates. selling securities such as Treasury bonds and Treasury bills. selling stock in government-owned corporations. selling shares in gold owned by the Federal Reserve via special drawing rights.
Business
1 answer:
otez555 [7]2 years ago
4 0

The U.S. government funds the federal budget deficit by selling securities such as Treasury bonds and Treasury bills.

<h3>What is budget deficit?</h3>

Budget deficit is when the government expenditure is more that its revenue. Here, the expenses incurred are more that what comes in as income to the government.

Hence, the U.S. government funds the federal budget deficit by selling securities such as Treasury bonds and Treasury bills.

Learn more about budget deficit here: brainly.com/question/26010226

#SPJ12

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8 0
3 years ago
Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods
eimsori [14]

This is the full question:

At the beginning of 2016, Air Asia purchased a used airplane at a cost of $40,000,000. Air Asia expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,000,000. Air Asia expects the plane to be flow 1,200,000 the first year and 1,400,000 the second year.

1) Compute second-year (2017) depreciation expense using the following methods

a. Straight-line

b. Units-of-production

c. Double-declining-balance

2) Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods:

Answer:

Explanation:

1)a) Straight-line

Depreciable base = Cost of the Asset - Residual Value

                              = $40,000,000 - $5,000,000

                              = $35,000,000

Depreciation expense per year = Depreciable base / years of useful life

                                                     = $35,000,000 / 8

                                                     = $4,375,000

The depreciation expense for the second year is = $4,375,000

                                                                                       

b) Units-of-production

Units of Production Rate = Depreciable Base / Units Over Useful Life

                                        = $35,000,000 / 5,000,000 miles

                                        = 7

Depreciation Expense = Units of Production Rate x Actual Units Produced

                                      = 7 x 1,400,000 miles in the second year

                                      = $9,800,000

c. Double-declining-balance

Double-declining balance = 2 x (Asset Cost - Residual Value ) / Useful Life of the Asset

                                           = 2 x ($40,000,000 - $5,000,000) / 8

                                           = $8,750,000

2) a) Straight-line Accumulated depreciation

We simply multiply the previous answer by two = $4,375,000 x 2

                                                                              = $8,750,000

2) b) Units-of-production Accumulated depreciation

First we find the depreciation expense for the first year using the same formula as above

= 7 x 1,200,000

= $8,400,000

Finally we simply add up depreciation expense for the two years

= $8,400,000 + $9,800,000

= $18,200,000

2) c) Double-declining-balance Accumulated depreciation

We simply multiply the first result by two = $8,750,000 x 2

                                                                    = $17,500,000

                                       

                           

5 0
3 years ago
Why do most economists believe that it is important for a country’s central bank be independent of the rest of the country’s cen
ohaa [14]

Answer:

For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.

In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.

Explanation:

There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.

5 0
3 years ago
During a certain year, the nominal interest rate was 7 percent, the real interest rate was 4 percent, and the CPI was 198.3 at t
Dima020 [189]

Answer:

CPI at the beginning of the year = 192.52

Explanation:

given data

nominal interest rate = 7 percent

real interest rate = 4 percent

CPI = 198.3

to find out

CPI at the beginning of the year

solution

we know that according to fisher equation

1 + r = \frac{1+n}{1+i}    ....................1

and for smaller values is equivalent to r

r = n - i           .....................2

here r is real interest rate and n is nominal interest rate and i is inflation rate

so from equation 2

4 = 7 - inflation rate

inflation rate = 3 percent

so

Rate of inflation = (CPI at the end of the year - CPI at the beginning of the year) × 100 ÷ CPI at the beginning of the year

put here value

3% = (198.3 - CPI at the beginning of the year) × 100 ÷  CPI at the beginning of the year

CPI at the beginning of the year = \frac{19830}{103}

CPI at the beginning of the year = 192.52

7 0
3 years ago
Minerals are structurally simple, inorganic substances that exist as groups of one or more of the same atoms. In chemistry, what
olga_2 [115]

Answer:

The substance does not contain carbon .

Explanation:

Usually, an inorganic substance is a type of chemical substance that loses bonds with carbon-hydrogen, that is, a product that is not biological.

  • The difference, though, is not defined and accepted, and experts have varying views on the matter.
  • An inorganic compound, any material which generally combines two or more chemical compounds other than carbon, almost always in clear and obvious percentages.

5 0
3 years ago
Read 2 more answers
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