Answer: Yes, the budget deficit will have on the current rate of inflation.
Explanation:
If the budget deficits have inflated the monetary policy, therefore, the monetary policy will affect the short run of aggregate supply curve. In this scenario, large budget deficits will shift the curve upward due to the increase in expected inflation, which will surely make the current inflation rate to be higher.
Answer:
Rights needed for each new share = 8.14 rights
Explanation:
Amount needed to expand = $1.6 million
465,000 shares of stock outstanding at a market price per share of $32.50
The subscription price = $28
Number of rights issued = 1 right per share × 465,000 shares
Number of rights issued = 465,000 rights
Number of shares needed = $1,600,000 / $28
Number of shares needed = 57,142.857
Rights needed for each new share = Number of rights issued / Number of shares needed
Rights needed for each new share = 465,000 / 57,142.857
Rights needed for each new share = 8.14 rights
Complete Question:
The O'Hara, Parness, and Lincoln partnership balance sheet reports capital of $50,000 for O'Hara, $125,000, for Parness, and $25,000 for Lincoln. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio of 1/2 to O'Hara, 1/4 to Parness, and 1/4 to Lincoln. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara.
Answer:
The O'Hara, Parness, and Lincoln Partnership
Journal Entry:
Date Description Debit Credit
O'Hara Capital A/c $50,000
Cash Account $50,000
To record the withdrawal of O'Hara and his capital interest.
Explanation:
The Partnership of O'Hara, Parness, and Lincoln can use the journal entry as above to record the withdrawal of a partner. The O'Hara's Capital account previously had a credit balance and cash will be involved in settling O'Hara, the journal entries to complete the withdrawal of O'Hara are a debit to the O'Hara's Capital account and a credit to the Cash account. This arrangement is in accordance with the partnership agreement. This is the most important governing law for the partnership and everything or transaction affecting the partnership must be done accordingly. It is only in the absence of an agreement that the laws or general practise concerning partnership can be applied.
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Answer:
The correct answer is option c.
Explanation:
Inflation implies an increase in the general price level. It reduces the purchasing power of consumers.
If the wages are increasing slower than the rate as inflation it means that the disposable income is increasing at a slower rate than the increase in prices. It implies that purchasing power is declining.
If wages are increasing at the same rate as inflation, it means that the purchasing power is constant. If wages are increasing at a faster rate than the increase in the inflation rate, it means that the purchasing power is increasing.