Answer:
AD2 and then to AD3
Explanation:
If the investment is continued to increase by federal reserve it would only be feasible when money creation decreases the interest rate.
The aggregate demand would then be expanded and the aggregate demand curve shifted to the right. The necessary increase in aggregate demand must be such that aggregate shifts in demand curve from AD1 to AD2 to AD3.
Answer:
The Journal entry for the first interest payment and the amortization of the related bond premium is as follows:
Premium on issue of bond:
= $30,887
Interest expense A/c ($440,000 - $30,887) Dr. $409,113
Premium on issue of bond A/c Dr. $30,887
To cash ($8,000,000 × 11% × ½) $440,000
Answer:
B. equity credit channel
Explanation:
Investment banks specialize in creating shares of stock for a company to raise funds through selling equity.
Answer: 8.75 years
Explanation:
To solve this we can use the brilliant rule of 70 which posits in it's simplest form that an amount will double if we decide 70 by it's required rate.
For example if you want to know how long your 20 billion will take to double given a 15% rate you say,
= 70/15
= 4.67 years.
In that same light therefore, we can calculate for this question thus,
= 70/8
= 8.75 years.
If you need any clarification do comment.
Answer:
The <u>under-benefited</u> partner or individual is more likely to perceive unequity as a problem.
Explanation:
Equity theory determines that the distribution of resources is equal or fair between the relational partners. It is measured by comparing the contribution and benefit ratio of the individuals.
According to this theory, creating systems which allows the equal distribution of resources between the members of the group will motivate them and maximize their rewards.
Each individual has different preference for equity and thus perceives equity and inequity differently.
<u>Therefore, an </u><u>under-benefited</u><u> individual is more likely to perceive unequity as a problem.</u>