Most time, any shift to a more expansionary monetary policy will exert a stabilizing impact on the economy if the effects of the policy are felt during an economic downturn.
<h3>What is an Expansionary monetary policy?</h3>
This fiscal policy is employed by the central bank to stimulate the economy because its increases the money supply, lowers interest rates, increases demand etc.
Therefore, the Option B is correct.
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Answer:
Caroline's paycheck each week is $12 per hour times the number of hours she works. Caroline thus currently earns a <u>NOMINAL</u> wage of $12 per hour. Suppose the price of sparkling water is $3 per gallon. The amount of sparkling water she can buy with her paycheck is <u>4 GALLONS</u> of sparkling water, which represents her <u>REAL</u> wage.
When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a <u>NOMINAL</u> wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's <u>REAL</u> wage is <u>LOWER</u> than both the worker and employer expected when they agreed to the wage.
Suppose that Caroline and her employer both expected inflation to be 3% between 2011 and 2012. They signed a two-year contract stipulating that Caroline would earn $12 per hour in 2011 and $12.36 per hour in 2012. However, actual inflation between 2011 and 2012 turned out to be 5% rather than the expected 3%. For example, suppose the price of sparkling water rose from $3 per gallon to $3.15 per gallon. This means that between 2011 and 2012, Caroline's nominal wage <u>INCREASED</u> by <u>3%</u> and her real wage <u>DECREASED</u> by approximately <u>2%</u>.
Explanation:
Nominal wages are measured in current dollars, while real wages measure the employee's purchasing power. If the inflation rate is higher than expected, the total amount of goods that an employee will be able to purchase will decrease, lowering their real wage.
Answer:
D. Reimbursement
Explanation:
A principal may be defined as a company's agent dealing with a contractor. The principal has the duty to reimburse an agent for the amount of money used up while carrying out his/her duty. Reimbursement may be from expenses like cost of travelling, cost of meals, cost of lodging and so on. In other words, if an agent makes authorized spending while doing a job for the principal, the principal has the duty to reimburse the agent for the money spent.
Answer:
The answer is C.
Explanation:
Credit sales is $6,000
Bad debt is 3% of net credit sales which is $180($6,000 x3%)
Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.
According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.
So we have have:
Dr Bad debt expense $180
Cr Allowance for Doubtful Accounts $180
Answer:
Amortization table
Opening liability Installments Interest Principal payment Closing liability
139,108 18000 1211 16788.92498 122,319
122,319 18000 1043 16956.81423 105,362
105,362 18000 873 17126.38238 88,235
88,235 18000 702 17297.6462 70,938
70,938 18000 529 17470.62266 53,467
53,467 18000 354 17645.32889 35,822
35,822 18000 178 17821.78218 18,000
18,000 18000 0 0 0
