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Deffense [45]
3 years ago
12

Inflation is 20 percent. Debt is $2 trillion. The nominal deficit is $300 billion. If the expected inflation rate falls from 20

percent to 15 percent, by how much does the real deficit change? Expected inflation does not change the real deficit. The real deficit falls by 15 percent. The real deficit rises by 15 percent. The effects of a change in expected inflation cannot be quantified.
Business
1 answer:
romanna [79]3 years ago
4 0

Answer:

Option A is correct ( Expected inflation does not change the real deficit)

Explanation:

Real deficits are real variable and it is not affected by the change in inflation rate, because inflation is nominal variable. So, nominal value of deficits can be affected, but real value of deficits will remain same.

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Following are transactions for Valdez Services, a company owned by Brina Valdez. A. Brina Valdez invested $20,000 cash in the co
Sphinxa [80]

Answer:

Transactions that create revenue :

Transaction B

Transaction C

Transaction D

Journal Entries :

<u><em>Transaction B</em></u>

Cash $900 (debit)

Sales Revenue $900 (credit)

<u><em>Transaction C</em></u>

Cash $10,000 (debit)

Unearned Revenue $10,000 (credit)

<u><em>Transaction D</em></u>

Cash  $3,500 (debit)

Accounts Receivable  $3,500 (credit)

Explanation:

Transactions that create revenue

Hint ; Revenue is the increases in income that results in increases in assets and decreases in liabilities

3 0
3 years ago
Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultur
Morgarella [4.7K]

If Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultural intelligence. what would most likely help kelly get the job is: displaying appreciation for diversity.

<h3>What is  cultural intelligence?</h3>

Cultural intelligence can be defined as the ability of a person to know about different culture and to as well adapt and relate with people that are of culture that is different from his.

Based on the scenario kelly can get the job if he display the appreciation for cultural diversity which will inturn enables the recruiter known that kelly has knowledge about other cultures.

Therefore what would most likely help kelly get the job is: displaying appreciation for diversity.

Learn more about Cultural intelligence here:

brainly.com/question/4289199

brainly.com/question/14726265

#SPJ1

3 0
2 years ago
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2013, for $105,000 when the book value of Gates was $600,000
nata0808 [166]

Answer:

Goodwill    35,000 debit

   Investment in Gates      25,000 credit

  Retained Earnings          10,000 credit

--to adjust for change of method--

Explanation:

600,000 x 15% = 90,000

purchased at     105,000

<em>goodwill of 15,000</em>

<em />

+ 150,000 x 15% of net income = 22,500

- 50,000 x 15% dividends          =   (7,500)

<em>investment at the end of 2013:</em>

90,000 + 22,500 - 7,500 = 105,000

Then we purchase 25%

105,000 represent 15%

thus 25% would be: 105,000 / 0.15 x 0.25 = 175,000

purchased at 200,000

goodwill of 25,000 to be recognized.

So, equity method will be:

105,000 + 175,000 = 280,000 for the proportional equity

and 15,000 + 25,000 = 35,000 goodwill

Total of 315,000

While fair value will not recognize goodwill. and also, the investment is not modified when dividends and the gain for the year are delcared.

It measure at cost unless the market value of the stock decrease so we got:

105,000 1st purchase + 200,000 2nd purchase = 305,000

To adjust we are going to decrease investment by 25,000 and increase goodwill by 35,000 the other will go into retained earnings to balance out.

8 0
3 years ago
Which of these scenarios involves commodity money?
Alekssandra [29.7K]
Money is a kind of asset in an economy that is castoff to purchase goods and amenities from other people. A commodity is a physical thing that is willingly substitutable with one more item of the same type. Commodity money is a commodity that has intrinsic value. Intrinsic value is the commodity has worth though it is not used as money. So the answer is a woman offers her neighbor a US silver dollar in exchange for a bicycle.

4 0
3 years ago
Read 2 more answers
Railway Cabooses just paid its annual dividend of $3.10 per share. The company has been reducing the dividends by 10.9 percent e
Vlada [557]

Answer:     Po = Do(1+g)/Ke-g

                  Po = $3.10(1-0.109)/0.13 - (-0.109)

                  Po = $3.10(0.891)/0.13+0.109

                  Po = $3.10(0.891)/0.239

                  Po = $11.56

Explanation: The current market price of the stock equals the current dividend paid multiplied by 1+g divided by the excess of cost of equity over growth rate. The growth rate is negative in this case, thus, the growth rate would be deducted from 1. Moreso, the growth rate will be added to cost of equity since it is negative. Thus, the amount that the investor will be willing to pay is $11.56.

7 0
3 years ago
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