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2 years ago

The taylor rule puts _________ as much weight on closing the unemployment gap as it does on closing the inflation gap.

Business

1 answer:

ella [17]2 years ago

8 0

Taylor's rule puts double weight on closing the unemployment gap in comparison to the inflation gap.

<h3>What is inflation?</h3>

Inflation is the scenario where the price of goods or services is increased in such a way that results in decreasing the purchasing power of people.

The focus of Taylor's principle is to close the gap in unemployment by much double weight in contrast with the gap in inflation. It wants that the unemployment gap should be twice the inflation gap at the time of closing.

Therefore, the twice weight should be put up on unemployment as suggested by the rule of Taylor.

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Choose the correct description for the following money market instrument. A certificate of deposit is:

gulaghasi [49]

A correct option is option (c). A certificate of deposit is a debt instrument sold by a bank to depositors that pays annual interest on a given amount and at maturity pays back a debt instrument sold by a bank to depositors that pays annual interest of a given amount and at maturity pays back the original purchase price. The original purchase price.

What is an accurate description of money market instruments?

A variety of securities, such as short-term Treasury securities (such as T-bills), certificates of deposit (CDs), commercial paper, repurchase agreements (repos), and money market mutual funds that invest in these securities make up the money market.

Is it a certificate of deposit security?

A fixed-term investment or certificate of deposit won't deplete your capital because of market volatility. It is a safe financial vehicle with a guaranteed payout at maturity, similar to regular insurance. The money you deposit into your CD will grow steadily, so there is no possibility of losing any of it.

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The correct question is:

Choose the correct description for the following money market instrument.

Upper A certificate of deposit is a certificate of deposit is:

a short dash term debt instrument issued by large banks and well dash known corporations. A short-term debt instrument issued by large banks and well-known corporations. nothing

an overnight loan between banks.an overnight loan between banks.

a debt instrument sold by a bank to depositors that pays annual interest on a given amount and a maturity pays back debt instrument sold by a bank to depositors that pays annual interest on a given amount and at maturity pays back the original purchase price. the original purchase price.

a short dash term money market instrument issued primarily by banks and funded from corporations and a short-term money market instrument issued primarily by banks and funded from corporations and other banks through loans in which Treasury bills serve as collateral comma with an explicit agreement to pay off the debt other banks through loans in which Treasury bills serve as collateral, with an explicit agreement to pay off the debt shortly.

8 0

2 years ago

The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capi

yan [13]

Answer:

may limit the extent to which a nation specializes in producing of a particular product.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.

The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).

Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.

3 0

3 years ago

Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving s

horsena [70]

Answer:

1). Account receivables A/c Dr. $1,345,000

To sales revenue A/c $1,345,000

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $975,700

To merchandise inventory A/c $975,700

(Being the cost is recorded)

2. Allowance for doubtful accounts A/c Dr. $19,400

To accounts receivable A/c $19,400

(Being the written off is recorded)

3. Cash A/c Dr. $670,800

To accounts receivables A/c $670,800

(Being cash received is recorded

1. .Account receivable A/c Dr. $1,529,400

To sales A/c $1,529,400

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $1,332,100

To merchandise inventory A/c $1,332,100

(Being the cost of goods sold is recorded)

2. Allowance for doubtful accounts A/c Dr. $27,000

To Account receivable A/c $27,000

(Being the written off amount is recorded)

3. Cash A/c Dr. $1,391,600

To account receivable A/c $1,391,600

(Being the cash received is recorded)

4. Bad-debts expense A/c Dr. $28,000

(765,600 × 1% + 20,344)

To allowance for doubtful accounts A/c $28,000

(Being the bad debt expense is recorded)

Working note:

Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600

Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800

Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000

= 6,548 - 27,000

= 20,344 Debit BalanceThe journal entries are shown below:

According to the scenario, computation of the given data are as follows:-

Journal Entries for 1st year

1). Account receivables A/c Dr. $1,345,000

To sales revenue A/c $1,345,000

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $975,700

To merchandise inventory A/c $975,700

(Being the cost is recorded)

2. Allowance for doubtful accounts A/c Dr. $19,400

To accounts receivable A/c $19,400

(Being the written off is recorded)

3. Cash A/c Dr. $670,800

To accounts receivables A/c $670,800

(Being cash received is recorded)

4. Bad-debts expense A/c Dr. $38,389

(1,345,000-19,400-670,800) × 2.90+ $19,400

To allowance for doubtful accounts A/c $38,389

(Being the bad debt expense is recorded)

Journal Entries for 2nd year

1. .Account receivable A/c Dr. $1,529,400

To sales A/c $1,529,400

(Being the sales revenue is recorded)

Cost of good sold A/c Dr. $1,332,100

To merchandise inventory A/c $1,332,100

(Being the cost of goods sold is recorded)

2. Allowance for doubtful accounts A/c Dr. $27,000

To Account receivable A/c $27,000

(Being the written off amount is recorded)

3. Cash A/c Dr. $1,391,600

To account receivable A/c $1,391,600

(Being the cash received is recorded)

4. Bad-debts expense A/c Dr. $28,000

(765,600 × 1% + 20,344)

To allowance for doubtful accounts A/c $28,000

(Being the bad debt expense is recorded)

Working note:

Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600

Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800

Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000

= 6,548 - 27,000

= 20,344 Debit Balance

Explanation:

8 0

2 years ago

A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal

noname [10]

Answer:

the value of the marginal product of labor is $500

Explanation:

The computation of the value of the marginal product of labor is shown below:

= MRP × price per unit

= 10 units × $50 per unit

= $500

hence, the value of the marginal product of labor is $500

We simply applied the above formula

5 0

3 years ago

According to Michael Porter, a firm practicing a niche strategy:

Maslowich

Answer:

b. Dominates a particular target market although its overall market share may be low.

Explanation:

A niche strategy of the porter was to come with the product that fills the market segment and is characterized by the narrow specialization of the services focusing on a specific need.

4 0

3 years ago