Answer:
5
Explanation:
Interest earned ratio is a financial ratio used to measure a company's ability to meet its obligations to the providers of the long term debt based on earnings.
It is measured as the earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.
Earnings before interest and taxes (EBIT) = $1,000,000 + $600,000 + $400,000 = $2,000,000
Farrar Cakes’ times interest earned ratio
= $2,000,000/$400,000
= 5
1) Costs of input: If it costs more to produce a good, then the supply will increase.
2) Productivity: If workers are willing to produce more, than supply increases. Happy workers are more productive.
3) Technology: New machines, chemicals, and programs can cause an increase of productivity.
<span>4) Taxes: Taxes cause the cost of production to go up, causing a decrease in demand.</span>
A tight monetary policy means the Federal Reserve wants to decrease the amount of money in the economy.
So the answer is B. the Federal Reserve wants to decrease the amount of money in the economy