Answer and Explanation:
(1) Decrease in investment = Decrease in money supply / Investment multiplier
= $60 billion / 5 = $12 billion
Real planned investment will decrease by $12 billion
The Federal Reserve decreased money supply by 60 billion and we wish to determine by how much this would affect real planned investment. We have therefore applied the investment multiplier to determine decrease in real planned investment. This is based on Keynes' theory of investment multiplier
Answer:
Risk return you expect to pay high average return since it will give us better economic conditions.
Systematic risk does not include business risk (option c).
<h3>What is systematic risk?</h3>
Systematic risk are risk that are inherent in the economy. Systematic risk cannot be diversified away. They are also known as market risk. Examples of this risk include recession, inflation, and high interest rates. Systematic risk can only be insured against. Systematic risk is known as undiversifiable risk.
Business risk is an example of non-systematic risk. It is the risk that is specific to a business and not the whole economy. Non-systematic risk can be diversified by holding different types of stocks in the portfolio. Non-systematic risk are known as diversifiable risk.
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Answer:
the labor efficiency variance is $35,244 favorable
Explanation:
The computation of the labor efficiency variance is shown below:
As we know that
Efficiency Variance is
= Standard rate × (Standard hours - Actual Hours)
= $13.20 × (9.4 ×1,050 units - 7,200 hours)
= $13.20 × (9,870 hours - 7,200 hours)
= $35,244 favorable
hence, the labor efficiency variance is $35,244 favorable
Answer:
Estimated warranty liability
Explanation:
The journal entry is as follows
Estimated warranty expense Dr
To Estimated warranty liability
(Being the warranty expense is recorded)
For recording the estimated warranty expense, we simply debited the estimated warranty expense and credited the estimated warranty liability so that the proper posting could be done
