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2 years ago

Suppose an increase in interest rates causes rising unemployment and falling output. to counter this, the federal reserve would

1 answer:

8 0

Most likely A) increase money supply, because they are capitalism economy. The federal reserve is in charge of all the country's Capitol, or: resources and money.
(but for a country that is more sympathetic to the people it would be B) because it would increase social security nets like welfare)

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Jimmer’s nominal income will go up by 10 percent next year. Inflation is expected to be – 2 percent next year. By approximately

kompoz [17]

Answer:

Nominal interest rate (n) = 10% = 0.10

Inflation rate (i) = -2% = -0.02

Real interest rate (r) = ?

Application of Fisher's Equation

(I + n) = (1 + r)(1 + i)

(1 + 0.10) = (1 + r)(1 + -0.02)

1.10 = (1 + r)(0.98)

<u>1.10</u> = 1 + r

0.98

1.1224 = 1 + r

1.1224 - 1 = r

r = 0.1224 = 12.24%

Jimmer's real income will change by 12.24% next year.

Explanation:

In the determination of the rate of change in real income, there is need to apply Fisher's equation. The nominal rate and inflation rate have been given, thus, we will make the real rate the subject of the formula.

3 0

2 years ago

A company's 2013 year-end balance sheet included the following: Jan. 1 Dec. 31 Accounts Receivable $80,000 $100,000Inventory $60

denis-greek [22]

Answer:

B. $170,000.

Explanation:

X company

statement of cash flow

For the year ended

Net income (balancing) (Note - 1) $170,000

Cash flow from operating activities

Depreciation expense $25,000

Increase in account receivable $(20,000)

Increase in inventory $(10,000)

decrease in Prepaid Expenses $25,000

Decrease in Accounts Payable $(20,000)

Increase in Deferred Revenue $30,000

Net cash flow from operating activities $200,000

Note 1:

Net cash flow from operating activities - Total changes in working capital= $200,000-$30,000 = $170,000.

3 0

2 years ago

Perhaps the best method for estimating the market value of shareholders' equity is to: _____________

kupik [55]

Answer:

C.multiply number of shares outstanding by the price of each share

4 0

2 years ago

As a leader of the audit team, what do you tell your employees to do first?

Bogdan [553]

Answer:

get to work or your not getting paid. that's what I would say

5 0

2 years ago

On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,000. Woodstock also paid $1,000 for transportation and insta

ruslelena [56]

Answer:

D. $6,000

Explanation:

The book value of a new asset includes the purchase price and other related costs that make it ready for use. For Woodstock company, the book value of the new machine will be the buying price of 40,000 plus 1000 transport costs.

Book value = $41,000

The straight-line depreciation method charges equal amounts throughout the life of the asset.

The depreciable amount = asset value - salvage value

=$41,000 - $5000

=$36,000

The depreciation rate = 1/6 x 100

=16.66 %

Annual depreciation = 16.66% x $36,000

=16.66/100 x $36,000

=0.16667 x $36,000

=$6,000

7 0

2 years ago