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Alborosie
3 years ago
13

The government of Happyland collects $100 million in taxes each year and currently has a public debt of $1.2 billion, which it f

inances by issuing Treasury bonds that pay 8% per year. Is this a manageable level of debt for the government of Happyland
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

No, the debt is not manageable because interest payments equal $96 million per year.

Explanation:

Annual interest payment for debt = 0.08*1.2B = $96 million

Only the interest payment is about 96% of government revenue, so its not manageable.

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Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on Decem
tino4ka555 [31]

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

brainly.com/question/14529006

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6 0
2 years ago
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at
mestny [16]

Answer:

Predatory pricing.

Explanation:

When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.

Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.

8 0
2 years ago
Which one of these is covered by a specific type of insurance policy?
irina1246 [14]

Answer:

A.Off grid homes

Explanation:

Specific type of insurance policy covers the most common perils except those specifically excluded perils such as earthquake, flood, nuclear disaster, landslide.

OFF GRID HOMES refer to homes which are self-sufficient without reliance on  modern technology and public utilities. That means that this homes do not have access to electricity, gas, water, etc.

Therefore, these homes can be insured by a specific type of insurance policy.

4 0
2 years ago
Which of these is most likely a short-term goal for a high school freshman? A. Buy a house B. Retire comfortably C. Graduate fro
SVETLANKA909090 [29]

Answer:

D. Attend this afternoon's meeting

Explanation:

So Many high school freshman have a goal just to become familiar with their new setting.

3 0
3 years ago
If the Fed engages in an open market sale with a bond dealer, the bond dealer's bank's transactions deposits liabilities will __
Sliva [168]

Answer:

The correct answer is option c.

Explanation:

If the Federal bank sells securities to a bond dealer, the dealer will need to pay back the Fed. This will cause a reduction in the dealer's bank's transaction deposits liabilities.

A reduction in deposits liabilities will further cause a reduction in the total reserves of the bank. Consequently, it will cause a decrease in the money supply. In this way, the federal reserve bank can curb inflationary pressures.

4 0
3 years ago
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