Answer:
Interest paid in cash in 2018 = $0
Interest recognized on the Income statement = $1,800
Liabilities recognized = $90,000
Amount paid for Principal and interest = $93,600
Interest reported on 2019 Income statement = 1800
Explanation:
Interest paid in cash in 2018 is zero because interest and principal were paid in cash on the maturity date.
Interest recognized in 2018 = 90000*0.08*3/12 = $1800
liabilities are recognized at original amount because the interest is not capitalized and no payment made thus far.
Amount paid on maturity date is 93,600 ( 90000 principal, 3600 interest)
interest reported is for three months jan - march
Answer:
a) Gold = $1,380; Silver = $1,020
b) Gold = $1,300; Silver = $980
Explanation:
a) At first, with Qg = 60 and Qs = 270, the equilibrium prices for gold and silver are found by solving the following linear system:
Equilibrium price of gold is $1,380 and the price of silver is $1,020.
b) If the supply of gold increases to 120, since the goods are substitutes, there will be an increase in overall supply and the equilibrium price of gold and silver will decrease as follows:
Equilibrium price of gold is $1,300 and the price of silver is $980.
Answer:
The correct answer is letter "B": franchising.
Explanation:
A Franchise is a business where one person, the <em>franchisee</em>, gains access to the proprietary knowledge, processes, and trademarks of a <em>franchisor</em>. In return for a royalty, the franchisee acquires the right to market a product or service under an existing brand name.
The customer is already familiar with the brand, so there is no need to invest additional resources to promote the product.
Answer:
Excess supply
Explanation:
Demand is the quantity required or requested by buyers while supply is the quantity of a good that a producer is able to supply to the buyer.
When demand is equal to supply there is equilibrium and no excess in demand or supply.
However when the amount supplied exceeds the demand for a product there will be excess product in the market. This is called excess supply.
Conversely when the quantity demanded is more than that supplied it is excess demand
Answer:
A) Somewhat effective, but only to the extent that most of the tax cut is concurrently spent on domestic output, that multiplier effects occur, and crowding out is small.
Explanation:
First of all, the larger amount of money would increase the inflation rate since aggregate supply hasn't increased. The number of goods and services offered do not vary, then only thing that varies is the amount of disposable money.
The larger the multiplier, the larger the positive effect. The multiplier formula = 1 / MPS (marginal propensity to save). Even though inflation increases, still the economy is going to grow. That unless the local residents decide to purchase many imported goods. The larger the amount of imported goods purchased, the lower the positive effects.
This type of policy can be very effective under conditions where deflation or inflation rates are near 0 or even negative. Although high inflation is very bad for the economy, a small amount of inflation is always needed to boost economic growth. The healthy inflation is around 1.5 - 2% per year. This way salaries and wages can grow, pushing aggregate demand and supply.
