The correct answer is A. processes
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An increase in money supply causes the real interest rate to remain unchanged and the price level to rise in long-run general equilibrium.
Unlike partial equilibrium analysis, which only examines individual markets, general equilibrium analysis examines the entire economy. In an economy with several markets operating concurrently, general equilibrium illustrates how supply and demand interact and tend toward balance.
By attempting to demonstrate that the interaction of supply and demand will lead to an overall general equilibrium, general equilibrium theory seeks to explain the behavior of supply, demand, and prices in a large economy with several or many interacting markets.
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Answer:
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Explanation:
Answer:
10%
Explanation:
Given that,
Interest at last year debt = 8%
Current year cost of debt = 25% higher
Firms paid for debt last year = 10%
Firms paid for debt in current year = 12.50%
Kd - cost of debt
Yield = Interest at last year debt × (1 + increase in cost of debt)
= 8% × (1 + 0.25)
= 8% × 1.25
= 10%
Kd = Yield (1 – T)
Kd = 10% (1 – 0)
= 10% (1)
= 10%
Therefore, after tax cost of debt would be 10%.
Answer:
Interest capitalized for 2021 was $ 36,000
Explanation:
In order to calculate the Interest capitalized for 2021 we would have to calculate first the Average accumulated expenditures for 2021 as follows:
Average accumulated expenditures for 2021 = ($200,000 * 12/12) + ($300,000 * 4/12) + ($300,000 * 0/12)
= $200,000 + $100,000 + 0
= $300,000
Therefore, to calculate the Interest capitalized for 2021 we would have to make the following calculation:
Interest capitalized for 2021 = [($200,000 * 12/12) + ($300,000 * 4/12) + ($300,000 * 0/12)] * 12%
= [$300,000] * 12%
= $36,000
Interest capitalized for 2021 was $ 36,000