Answer:
D. harms the society by interfering with the economy's natural process.
Explanation:
In order to get out of recession, the fed should reduce the tax rates, which would in return lead to higher disposable income of the consumers, and then there will be an increase in the demand.
On the other hand the sale of bonds would even further increase the recession, as there will be more cash crunch in the economy. A decrease in reserve ratio will be a long time taking solution, so it would not provide an immediate solution.
MCQ
But, if the fed interferes with the short run equilibrium in the hope of giving short run benefits, it will hamper the economy's natural process to attain a new equilibrium as discussed in the paragraph above. Hence, option D is the correct answer
Option A and C are incorrect, because, employment is not much affected with lowering of income tax. On, the other hand, inflation levels rise, when there is a cut in income tax, as it gives more currency in the economy, hence even C is incorrect.
Given:
<span>stockton company adjusted trial balance december 31
cash 7,530
accounts receivable 2,100
prepaid expenses 700
equipment 13,700
accumulated depreciation 1,100
accounts payable 1,900
notes payable 4,300
common stock 1,000
retained earnings 12,940
dividends 790
fees earned 9,250
wages expense 2,500
rent expense 1,960
utilities expense 775
depreciation expense 250
miscellaneous expense 185
To determine the total assets, we only have to consider the following:
</span>cash 7,530
accounts receivable 2,100
prepaid expenses 700
equipment 13,700
<span>accumulated depreciation <u> (1,100) </u>
</span>Total assets: 22,930 CHOICE D.
NET INCOME:
fees earned 9,250
<span>wages expense (2,500) </span>
<span>rent expense (1,960) </span>
<span>utilities expense (775) </span>
<span>depreciation expense (250) </span>
<span>miscellaneous expense <u> (185)</u>
</span><span>Net Income 3,580
LIABILITIES AND S.H.E
</span>accounts payable 1,900
<span>notes payable 4,300 </span>
<span>common stock 1,000 </span>
<span>retained earnings 12,940 </span>
<span>dividends (790)
</span>Net Income <u> 3,580</u>
TOTAL LIABILITIES & SHE 22,930
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
Answer:
The value of the time premium between the August and October options is $0.50
Explanation:
A time premium or time value is the amount by which the price of a stock option exceeds its intrinsic value.
To calculate the time premium between August and October we will Subtract October extrinsic value - August extrinsic value
Time premium = 6.25 - 5.75 = $0.50
Answer:
Poor management can affect the company's budget, employee turnover and overall profits. Finally, a decrease in productivity and morale are signs employees may be struggling with the leadership being given. If employees have an effective leader their task performance will continue to soar
Explanation:
Hope it helps
