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3 years ago

Consider the following data for a closed economy:

Business

1 answer:

notsponge [240]3 years ago

4 0

Answer: The answer is given below

Explanation:

a. . Private saving

Private saving=Y+TR-C-T

= $11t + $1t - $8t - $3t

= $12 trillion - $11 trillion

= $1 trillion

b. Public saving

Public Saving= T-G-TR

Since G is not given, we can use:

I = public saving + private saving

$2t = public savings + $1t

Public saving= $2 trillion - $1 trillion

Public savings = $1 trillion

c. Goverment purchases

Since public savings = T - G - TR

$1t = $3t - G - $1t

G = $3t - $1t - $1t

G = $3 trillion - $2 trillion

G = $1 trillion

d. The goverment budget deficit or budget surplus.

There is a budget surplus of $1 trillion which has been calculated in the public savings.

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4 years ago

A company opting to boost its sales of branded footwear by offering buyers 500 models/styles to choose from should consider redu

Pavel [41]

Answer:

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4 years ago

At December 31, 2017 (the end of the fiscal year), Grouper Corporation owes $1,720,000 on a note payable due January 31, 2018. I

zubka84 [21]

Answer:

Nil or $0

Explanation:

The entire amount of $1,720,000 should be reported as long term liability, as the both the criteria of intent and ability are met. The second note (long term note) was issued to repay the first one. It is presumed the firm did not have enough current assets to pay the first note and that the second note is made before the issue of the balance sheet. So, the amount to be reported as current liability is "nil".

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3 years ago

On October 1, Bramble's Carpet Service borrows $362000 from First District Bank on a 3-month, $362000, 6% note. What entry must

Luba_88 [7]

Answer:

Dr Interest expense -$21,720

Cr interest Payable - $21,720

Explanation:

Interest

Since it is a short-time loan (3-month), the interest rate will be prorated to 3-month.

Interest expense = $362,000 × .06 × 3/12 = $21,720

Hence, following entries will be recorded :

Dr Interest expense -$21,720

Cr interest Payable - $21,720

For Principal amount Borrowed:

Cr Loan payable $362000

Dr. Bank Account $362000

Upon Settlement :

Dr. Interest Payable $21,720 and Cr Bank Account $21,720

Dr. Loan payable $362000 and Cr Bank Account $362000

4 0

3 years ago

A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years

yanalaym [24]

Answer:

4 years

Explanation:

We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.

DATA

Amount borrowed = $635.52

future amount = $1,000

Interest rate = 12%

Time period (n) = ?

Solution

Amount borrowed = future amount x Present value factor (12%, n)

$635.52 = $1,000 x PV factor(12%, n)

0.63552 = PV factor(12%, n)

If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.

8 0

3 years ago