Answer:
b) surplus; shortage; up; fall
Explanation:
If the bond market and money market start out at equillibrum, and money supply is increased there will be an excess (surplus) of money over bonds.
That is more money to buy less bonds. The relative scarcity of bonds will result in a shortage (bond supply cannot meet demand).
As a result of the shortage price of bonds will increase because more people are looking for the scarce bonds.
Price of bonds has an inverse relationship with interest. As price increases interest rates will fall.
For example consider a zero coupon bond of $1,000, being sold for low price of $850. On maturity it will yield gain of $150.
If the price rises to $950 the yield will only be $50.
So as price increases and interest (yield) decreases, it will no more be attractive to investors and demand will reduce to meet the available supply of bonds.
The software that automates these tasks is called ________. I would say Excel or some other application using spreadsheets.
Answer:
increase in government purchases
Explanation:
If there is a contraction in the economy, the government should conduct expansionary policies to increase money supply.
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Answer:
(D) decrease revenues and decrease assets
Explanation:
Since the revenue is unearned, its entry in the books needs to be reversed.
When a revenue was recorded in the books, the like journal entry would have been.
Debit Cash/Bank/Receivables Account (thus increasing asset)
Credit Revenue Account (thus increasing revenue)
There, reversing the entry will involve decreasing revenue and decreasing asset.
