What are the three factors which make an acceptable medium of exchange?

Suppose that the U.S. Government decides to charge draft beer drinkers a tax. Before the tax, 35 million glasses of draft beer w

RUDIKE [14]

Answer:

$3 per glass

Explanation:

THe consumer are paying (9-6) per glass, so $3 higher.

Most other data in the question seems irrelevant.

7 0

4 years ago

The following table shows the assets and liabilities of the Chang family in 2007 and 2008.

Aleks [24]

Answer:

d

Liabilities are what someone owes and assets are what someone owns and is worth something. The house is an asset and the car loan is a liability. According to the numbers provided the assets have an increase of $6,000 with +10,000 from the house and -4,000 from the car. And liabilities had a decrease of $25,500 with a -$29,000 from mortgage and car loans and a +3,500 from the savings account and debt. So assets increase and liabilities decrease.

5 0

3 years ago

Suppose the economy is in long-run equilibrium. Then because of corporate scandal, in- ternational tensions, and loss of confide

dsp73

Answer:

The answer is: b

Explanation:

In long-run equilibrium, the long run aggregate demand curve and aggregate supply curve intersect where the marginal revenue (revenue derived from selling an additional unit) and marginal cost (cost incurred from producing) an additional unit) are equal. In the long-run equilibrium, this intersection occurs at the lowest point of the long-run average total cost curve (curve depicting the average cost per unit of production).

Holding all else constant, short run changes in the economy would not change the potential output levels. The long-run aggregate supply curve would remain fixed at the potential level of output. However, these changes: international tensions, corporate scandals and loss of confidence in policymakers would cause shifts in the aggregate demand curve since demand would be adversely affected.

Consumer confidence is the perspective or outlook that consumers have on the state of the economy. The destabilising factors given in this scenario would raise the levels of uncertainty and perceived risk, reducing the confidence levels of consumers and ultimately resulting in reduced demand. In long-run equilibrium, when demand is reduced, it is indicated by a leftward shift in the aggregate demand curve.

7 0

3 years ago

Jane sent her boss an e-mail suggesting that they have a performance review to see whether jane was ready for a raise. her boss

d1i1m1o1n [39]

She should have had face to face conversation because in an email words can express many misinterpreted feelings, she should have asked to have a personal meeting in the email over her review

8 0

3 years ago

Read 2 more answers

Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A Portion of

inna [77]

Answer:

1. Bonds are issued at a premium.

2. $55,338,768.

3. $50,000,000

4. 8%

5. 7%

6. $74,661,232

Explanation:

The well arranged table is as below for clarity:

Date Cash Paid Interest Decrease in Carrying Value

Expense Carrying Value

01/01/2021 $55,338,768

06/30/2021 $2,000,000 $1,936,857 $63,143 55,275,625

12/31/2021 2,000,000 1,936,857 65,353 55,210,272

1. Face Value of Bonds = $50,000,000

Issue Value of Bonds = $55,338,768

Issue value of bonds is higher than its face amount; therefore, bonds are issued at a premium.

2. Original issue value of bonds is $55,338,768.

3. Face amount of the bonds is $50,000,000.

4. Semiannual interest rate = Cash paid / Face value of bonds

Stated semiannual interest rate = $2,000,000 / $50,000,000 = 0.04 =4%

Stated annual interest rate = 4% × 2 = 8%

The stated annual interest rate is 8%

5. Market semiannual interest rate = Interest expense on 6/30/21 / Carrying value on 1/1/2021

Market semiannual interest rate = $1,936,857 / $55,338,768

Market semiannual interest rate = 0.035 = 3.50%

Market annual interest rate = 2 × Market semiannual interest rate

Market annual interest rate = 2 × 0.035 = 7%

The market annual interest rate is 7%

6. Tenure of bonds = 20 years

Number of semiannual payment = 2 * Life of bonds = 2×20 = 40

Total cash paid = Number of semiannual payment × Semiannual interest payment + Maturity value of bonds

Total cash paid = 40 × $2,000,000 + $50,000,000

Total cash paid = $130,000,000

Total cash paid for interest = Total cash paid - Issue value of bonds

Total cash paid for interest = $130,000,000 - $55,338,768

Total cash paid for interest = $74,661,232

The total cash paid for interest assuming the bonds mature in 20 years is $74,661,232.

6 0

4 years ago