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Vladimir [108]
3 years ago
9

A lower interest rate increases consumption, investment, and __________, which ___________ aggregate demand.

Business
1 answer:
alukav5142 [94]3 years ago
6 0
A lower interest rate increases consumption, investment, employment, which results in an increase in aggregate demand. 
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That statement is False.

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Department S had 600 units 74% completed in process at the beginning of the period, 8,800 units completed during the period, and
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The public report that a developer must provide when offering subdivided lands for sale is provided by which agency?
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1 year ago
Suppose a local bank increases the fees they charge for their bank accounts by 2020 percent. In​ response, the demand for their
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3 years ago
In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventor
Rina8888 [55]

Answer:

a. Overstates Year 1 cost of goods sold.

b. Understates Year 1 net income

c. Understates Year 2 cost of goods sold

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a. The formula for Calculating the Cost of Goods sold is;

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If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.

b. The Cost of goods sold is deducted from sales to give Gross profit. If Cost of goods is overstated, it will reduce Gross Profit higher than it should. A lower Gross Profit equates to a lower Net Income.

c. Going by the formula in <em>a;</em>

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.

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3 years ago
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