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2 years ago

If the federal reserve overstimulates the economy by increasing money growth too much, then inflation will?

1 answer:

5 0

If the federal reserve overstimulates the economy by increasing money growth too much, then inflation will create arbitrary redistributions of wealth.

Income and wealth redistribution refers to the transfer of income and wealth (including tangible property) from some people to others by a social mechanism such taxation, welfare, public assistance, land reform, monetary policy, confiscation, divorce, or tort law. Rather than redistribution between particular people, the word often refers to distribution over the entire economy.

Individual viewpoints, political agendas, and the selective use of statistics all influence how the word is understood. It is widely used in politics to describe the perception of wealth redistribution from those with more to those with less.

Rarely, however, is the phrase used to refer to laws or practices that force redistribution to go from the poor to the rich.

Learn more about redistribution here

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Transactions for the Monty Company, which provides welding services, for the month of June are presented below. June 1 Monthly i

Leona [35]

Answer:

<u>Transactions:</u>

1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for 340.

3. June 3 $760 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $410 after completing welding work done on account.

<u>Journal Entries:</u>

June 1 Dr. Cr.

Investment $3,910

Cash $3,910

June 2 Dr. Cr.

Equipment $340

Account Payable $340

June 3 Dr. Cr.

Rent Expense $3,760

Cash $3,760

June 12 Dr. Cr.

P. Leonard (Receivable) $410

Welding Service Revenue $410

6 0

3 years ago

24. ABC Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary

nevsk [136]

Answer:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

Explanation:

The journal entries to prepare would be as follows:

Debit Credit

Deferred tax asset $5,000

Income tax expense $159,000

Income tax payable $164,000

Deferred tax asset=($400,000*20%)-$75,000

Deferred tax asset=$5,000

Income tax payable=$820,000*20%=$164,000

Income tax expense=$164,000-$5,000=$159,000

Debit Credit

Income tax expense $25,000

Valuation Adjustement $25,000

5 0

4 years ago

on september 1, best company began a contract to provide services to dilwood company for 6 months, with the total of $10800 paym

Lelu [443]

Answer:

Fee Receivable$7,200

To Service Fees Earned $7,200

(Being the service fess earned is recorded)

Explanation:

Th adjusting entry is shown below:

Fee Receivable$7,200

To Service Fees Earned $7,200

(Being the service fess earned is recorded)

For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues

Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31

= $10,800 × 4 months ÷ 6 months

= $7,200

7 0

3 years ago

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.01 0.23 0.2 Bust 0.68 0.21 -0.06 -0.0

gregori [183]

Answer:

the expected return of a portfolio that has invested is 0.0625

Explanation:

The computation of the expected return of a portfolio is shown below;

= (0.32 × (6052 × (-0.01) + 5060 × 0.23 + 8047 × 0.2) + 0.68 × (6052 × 0.21 + 5060 × (-0.06) + 8047 × (-0.06))) ÷ (6052 + 5060 + 8047)

= 0.0625041808027559

= 0.0625

Hence, the expected return of a portfolio that has invested is 0.0625

Therefore the same should be considered and relevant

4 0

3 years ago

Since ______________________and the firm's sales has been forecasted to increase by 10 percent for next year, its pro forma inco

Veseljchak [2.6K]

Answer:

correct answer is American Tire is currently operating at its full capacity

Explanation:

given data

firm's sales increase by = 10 percent

growth in sales and fixed assets = 10 percent

solution

correct answer is American Tire is currently operating at its full capacity because here it is a currently operating at full capacity that is increase in the sales that is require similar increase in the fixed asset

and when it is a operating at the excess capacity then lower increase in the fixed asset is require

and when it retains all income then lower increases in the fix asset is require.

so correct answer is is American Tire is currently operating at its full capacity

7 0

4 years ago