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3 years ago

6

In the theory of deregulation economics, cutting taxes allows people to save more money. Banks then loan that money to businesse

s, and businesses invest the money in resources to improve productivity. a. True b. False

1 answer:

telo118 [61]3 years ago

3 0

True

this never works in practice though

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Sox Corporation purchased a 30% interest in Hack Corporation for $1,825,000 on January 1, 2021. On November 1, 2021, Hack declar

Kazeer [188]

Answer:

the loss reported is $1,135,000

Explanation:

The computation of the amount of loss reported is shown below:

Investment cost $1,825,000

Less: Share of Dividends received -$690,000 ($2,300,000 × 30%)

Carrying value of investment $1,135,000

Share of net loss $1,320,000 ($4,400,000 × 30%)

It should be limited to the carrying value of an investment

Hence, the loss reported is $1,135,000

8 0

3 years ago

Within a PPF framework, explain each of the following: (a) a disagreement between a person who favors more domes-tic welfare spe

arsen [322]

Answer:

A. Movement on the PPC

B. Rightwards / Outwards shift of PPC

C. Less Concavity of PPC

Explanation:

Production Possibility Curve is combination of two goods that an economy can produce, given resources & technology (efficient utilisation).

It is a downward sloping curve as more of one good can be produced by sacrifising other good, same resources & technology.
It is concave curve because of increasing marginal opportunity cost, i.e increasing amounts of a good to be sacrifised to gain additional amount of other good, as resources are not equally efficient in production of both goods.
Points on PPC reflect full utilisation, points under PPC reflect under utilisation, points above PPC are unattainable.

a) A disagreement between persons favouring more domestic welfare spending or national welfare spending : Is just an issue of reallocation of same resources, technology. So, PPC doesn't change & there can only be movement on the PPC (more of one good, less of other good)

b) An increase in population : leads to increase in human resource & hence the PPC shifts outwards / rightwards as the production potential of economy rise with more human resource.

c) Technological change that make resources less specialised : would reduce resources' efficiency gap in production of two goods. So, Marginal Opportunity cost reduces & hence the PPC becomes less concave.

6 0

3 years ago

Suppose the federal reserve wants to decrease the money supply by $400 billion. if the reserve requirement (rr) is 0.2, calculat

svetlana [45]

Two main modifications be made to guard the public, avoid bank bailouts, and expand banking protection and soundness.

<h3>What is the change in required reserves?</h3>

Increasing the (reserve requirement) ratios reduces the extent of deposits that can be supported with the aid of a given level of reserves and, in the absence of different actions, reduces the money stock and raises the price of credit.

<h3>What are the three dreams of the Federal Reserve?</h3>

It is the Federal Reserve's actions, as a central bank, to acquire three dreams distinct by using Congress: maximum employment, secure prices, and average long-term hobby rates in the United States.

Learn more about federal reserves here:

<h3>brainly.com/question/25817380</h3><h3 /><h3>#SPJ4</h3>

4 0

2 years ago

Portfolio diversification eliminates: Multiple Choice all investment risk. the portfolio risk premium. market risk. unsystematic

kaheart [24]

Answer:

Unsystematic risk

Explanation:

<em>The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.</em>

<em>According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.</em>

Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks

7 0

3 years ago

Chadwick Enterprises, Inc., operates several restaurants throughout the Midwest. Three of its restaurants located in the center

zalisa [80]

Answer:

1. $2.5 million

2. $0

Explanation:

1. Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,

= Book value - fair value

= $6.5 million - $4.0 million

= $2.5 million

2. In this case, the sum of future cash flows is exceeded than the book value. So, no impairment loss would be recognized i.e zero amount

6 0

3 years ago