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3 years ago

When government expenditures increase, the interest rate

Business

1 answer:

Julli [10]3 years ago

5 0

Answer:

The correct answer is option d.

Explanation:

When there is an increase in the government expenditures, the income in the economy will increase. As a result, the demand will increase. The increase in demand will increase the price level.

The suppliers will produce more. To increase output more capital investment will be required. This will further cause an increase in the demand of loan-able funds. So, the interest rate will increase as well.

With the increase in interest rates, the cost of borrowing will increase. This will lead to lesser capital investment and as a result the aggregate demand will be smaller, because of lower production and thus lower income.

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A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a four-year lease term (also

Ostrovityanka [42]

Answer:

year beginning interest payment total ending

balance payment payment balance

3 50000 7000 50000 57000 50000

4. 0 3500 50000 53500 0

b. The balance of the lease liability reported would be $ 150000

Interest payable would be $150000*0.07 = 10500

Explanation:

the opening balance is without the $50000 paid at the beginning of every year.

interest for the previous year is paid on the beginning of the current along with the payment for the year at the beginning.

7 0

3 years ago

Sales price $6.74 per unit

stiks02 [169]

Answer:

Margin of safety = 3190.922902 units rounded off to 3191 units

Explanation:

Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.

Margin of safety = Budgeted units - Break even number of units

First we need to calculate the break even in units. The formula for break even in units is,

Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)

Break even in units = 9376 / (6.74 - 2.33)

Break even in units = 2126.077098 rounded off to 2126 units

Margin of safety = 5317 - 2126.077098

Margin of safety = 3190.922902 units rounded off to 3191 units

7 0

3 years ago

If you are in a car accident cause by someone else who also has insurance, which type of insurance plan will not require you to

max2010maxim [7]

If you are in a car accident cause by someone else who also has insurance, the type of insurance plan that will not require you to pay out of pocket costs is liability insurance. If the car accident was not your fault and the person who caused the accident is also insured the claim should be paid by him under his coverage and your pocket will be safe as well as your insurance will not be affected.

7 0

3 years ago

Mountaineers Inc. sells its rock-climbing shoes worldwide. Mountaineers Inc. expects to sell 4,000 pairs of shoes for $165.00 ea

bogdanovich [222]

Answer:

expected sales January, 4,000 pairs of shoes at $165 each = $660,000

expected sales February, 2,000 pairs of shoes at $220 = $440,000

expected COGS = 75% of expected revenue

expected sales March, 4,600 pairs of shoes at $240 = $1,104,000

ending inventory = $18,000 plus 45% of next month's COGS

<h2> <u>Sales budget</u> </h2>

Month January February March

Units 4000 2000 4600

Price $165 $220 $240

Total sales $660,000 $440,000 $1,104,000

<h2><u>Inventory, Purchases and COGS Budget</u></h2>

January February March

cost of goods sold $495,000 $330,000 $828,000

<u>+ desired ending inventory $166,500 $390,600 ? </u>

Total merchandise required $661,500 $720,600 ?

<u>- beginning inventory ($315,000) ($346,500) ($374,100)</u>

budgeted purchases $346,500 $374,100 ?

8 0

3 years ago

Connie works in the Human Resource department of a company and is

GenaCL600 [577]

Answer:

Explanation:

A This scenario describes a payroll fraud ; This is a form of fraud where an employee or an employer manipulates the payroll system in order to fraudulently receive an un earned wages.

B The employees that Connie was paying to their account that she controls are called Ghost employees. These are fictitious person put on a payroll for fraud purposes.

C The fact that it took the company 5 years to discover the fraudulent practice indicates a weak internal control environment

Some of the actions that the company failed to do are
No proper authorization in place before employees are added to payroll
No segregation of duties as Connies appears to have been the person that add employees to payroll , approve and also disburse salary
There has been no headcount of employees for a long time
The entire payroll system has not been audited and reviewed for a long time

8 0

3 years ago