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4 years ago

What happens to consumption and investment spending when the Federal Reserve decreases the money supply

Business

1 answer:

Illusion [34]4 years ago

3 0

Answer: Consumption and investment spending decrease or falls.

Explanation:

When the Federal Reserve decreases the money supply, this will lead to a fall in the consumption and investment spending. This is a contractionary policy by the government which is typically used to curb inflation.

Since there's reduction in money supply, there'll be less money in circulation and hence, decrease in consumption and investment expenditure.

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Slotkin Products purchased a machine for $65,000 on July 1, 2017. The company intends to depreciate it over 8 years using the do

frez [133]

Answer:

A) $8,125

Explanation:

Note Slotkin Products uses the double-declining balance method. Under the double-declining balance method depreciation expense is calculated as :

Annual depreciation expense = 2 x SLDP x BVSLDP

where,

SLDP = 100 ÷ Useful life

= 12.5 %

and

BVSLDP = Cost in first year or Book Value for other succeeding years =

therefore,

Annual Depreciation expense = 2 x 12.50 % x $65,000 = $16,250

thus,

Partial depreciation from July 1, 2017 to Dec 31, 2017 - 6 months will be :

Depreciation expense = $16,250 x 6/12 = $8,125

Conclusion :

Depreciation for 2017 is $8,125

7 0

3 years ago

Sheridan Company prepared a 2019 budget for 150000 units of product. Actual production in 2019 was 175000 units. To be most usef

KengaRu [80]

Answer:

The actual results for 175,000 units with a new budget for 175,000 units.

Explanation:

To be more useful, actual results should be compared with budgeted amounts of actual production.

The actual results for 175,000 units should be compare with a new budget for 175,000 units

7 0

3 years ago

At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to

goldenfox [79]

Answer:

A) 82,275 materials; 79,400 conversion

Explanation:

<u>Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs</u>

1. Raw Materials

Ending Work In Process (11,500 × 85%) = 9,775

Completed and Transferred (72,500 × 100%) = 72,500

Equivalent Units of Production with respect to Materials = 82,275

2. Conversion Costs

Ending Work In Process (11,500 × 60%) = 6,900

Completed and Transferred (72,500 × 100%) = 72,500

Equivalent Units of Production with respect to Materials = 79,400

4 0

3 years ago

How do i make a freinds request on here

sattari [20]

You can’t sorry okonndjep

5 0

3 years ago

Read 2 more answers

Winston Corporation owns 25% of the voting stock of Tole Corporation and uses the equity method in recording the investment. Tol

Usimov [2.4K]

Answer:

c. debit to the investment account for $12,500.

Explanation:

The computation is shown below:

= Net loss reported × owning percentage

= $50,000 × 25%

= $12,500

Simply we multiplied the reported net loss and its owning percentage so that the accurate loss amount can come

Since it is a net loss, so it would be debited to the investment account for $12,500

Hence, all other options are wrong except option c.

5 0

3 years ago