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1 year ago

Tight monetary policy theory dictates that when the economy is faced with inflation, the government should:______

1 answer:

8 0

Tight monetary policy theory dictates that when the economy is faced with inflation, the government should increase interest rates.

When a central bank attempts to keep inflation under control, tight monetary policy, also known as contractionary monetary policy, usually takes place. The economy may become overheated as a result of excessive consumer and business borrowing and spending, which might significantly increase the cost of products and services.

The tight monetary policy suggests the Central Bank (or monetary policy authority) is attempting to slow down the demand for money and slow the rate of economic expansion. This typically entails rising interest rates. Usually, the goal of tight monetary policy is to lower inflation. For instance, cutting back on money printing or selling long-term government bonds to the banking industry. The antithesis of quantitative easing would be this.

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Answer:

In the salary expense account, the posting reference that will be found is Cash 11.

Explanation:

This posting reference shows that the contra entry was made in the Cash account which has a reference number of 11. The Posting Reference is a field that facilitates cross-referencing (showing the other account involved in the transaction) or interlinking between the journal and the ledger in the posting process. Posting reference columns are present in both the journal and the ledger. It is also known as the Folio. This is because with the double entry system of accounting, each transaction must reflect at least two accounts that are affected on the debit side and the credit side.

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3 years ago

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following c

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Answer:

POAR= 170% of the direct material cost.

Explanation:

Explanation:

The predetermined overhead absorption rate (POAR: The overhead absorption is a rate which is used to charge overheads to production units. Note that this rate is computed using estimated figures

The rate is computed as follows:

Predetermined overhead absorption rate

POAR

= (Budgeted overhead for the period/Budgeted direct material cost)× 100

= $680,000/400,00 × 100

= 170% of the direct material cost.

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3 years ago

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Explanation:

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4 years ago

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4 years ago

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Answer:

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3 years ago