We all can claim our tax exemption when we have kids and also for our personal exemptions in this case both of the person is already a senior citizen and probably their sons and daughter is already employed. In this Joint California tax return the exemptions that they can claim is 2.
Answer:
a. Benefits of growth;
1. Increased production to meet demand
b. Negative effects of inflation;
1. Increased opportunity cost of holding money
Explanation:
a.
Expansionary monetary policies are government incentives that aim to encourage the growth of the economy by increasing the supply of money in the economy. It involves the boosting of aggregate demand to cover for the shortfalls in private demand. Most economies that go into a recession is usually due to a lack in the aggregate demand. The main purpose of expansionary monetary policy is to encourage spending and investment by encouraging accessibility of money in the economy. When more people have access to money, they tend to invest more into the economy which encourages economic growth. On the same note, when individuals in an economy have money, it increases the availability of disposable income. This means that most people feel much wealthier which encourages them to spend more. Spending also increases demand for goods which encourages production which consequently encourages economic growth.
b.
On the contrary, when expansionary monetary policy exceeds a certain level, it leads to inflation. Inflation is basically the increase in prices in an economy due to increased demand for goods that surpasses the supply. Thus suppliers increase the price since the availability of goods and services is limited. Some effects of inflation include an increased opportunity cost of holding money and discourages investors since they are uncertain over the future.
Answer:
C) Operating, $12,000; financing $6,000.
Explanation:
Interests expenses do no change the notes payable or bond, but results in the reduction of the cash flow of a company. Therefore, the interests paid on both short terms notes payable and interest on long-term bonds will appear under the operating activities section of the cash flow statement.
Dividend appears under the financing activities section of the cash flow statement.
For this question, we therefore have:
Cash outflows from operating activities = Interest on short-term notes payable + Interest on long-term bonds = $2,000 + $10,000 = $12,000
Cash outflows from financing activities = Dividends on common stock = $6,000
Therefore, the correct option is C) Operating, $12,000; financing $6,000.
