Answer and Explanation:
The Journal Entry is shown below:-
Investment in bonds is at face value, no question about discount or premium.
Investment is rendered from the time the bonds mature before 2023. Hence, it is an investment as Working for Profit "Held until maturity"
Jan 1, 2018
Bonds receivables Dr, $140,000
To Cash $140,000
(Being Investment in bonds is recorded)
30 June 2018
Cash Dr, $2,400
To interest income $2,400
(Being six months interest received is recorded)
31 Dec 2018
3. Cash Dr, $2,400
To interest income $2,400
(Being six months interest received is recorded)
Working note:-
Bond Value $140,000
Interest rate 4%
Interest earned half
yearly, effective rate
(4% × 6 ÷ 12) 2%
Half Yearly interest amount
($140,000 × 2%) $2,800
The spending that would occur during the third round of spending if the marginal propensity to consume (MPC) was 0.6 will be $420 billion.
- Increase in expenditure = $700 billion.
- Marginal propensity to consume = 0.6
The amount of spending based on the information given will be:
= 0.6 × $700 billion
= $420 billion.
Therefore, the correct option is $420 billion.
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Answer:
The graph has been attached.
Explanation:
a. Please see attached graph with the shaded budget set labelled A
b. Please see attached. Curve C; D and E are the indifference curves. The most suitable one would be D since it is on the budget curve. E is not maximum utility and C is unattainable given his budget of $20.
c. U (X,Y) = X + 2Y
At C, Utility = 10 + 2(10) = $30. That is above his budget
At D, Utility = 10 + 2(5) = $20. This is within his budget. – most utility.
At E, Utility = 5 + 2(5) = $15. This is below his budget.
The Indifference curve that gives most utility is D, where cheese is 10 and cocoa is 5 units.
UK cuisine is largely international, with curry (for instance) being the most popular foodstuff in the UK, originating from Asia.
As Hungarian, Italian, Greek, Indian, French, Chinese, Vietnamese, Mongolian, and any number of other exotic food outlets are thriving in London, for instance, it would suggest that customer demand for these foodstuffs is enough to sustain business.
A large number of mixed Polish/Halal grocery shops have opened in areas of South London in recent years, catering to an increased number of workers and immigrants from the Middle-East and Eastern Europe.
The good old Fish'n'Chips shop is still going strong.
Many have expanded their menu to include kebabs - only fair, as kebab shops tend to sell chips too...
