Answer:
None of the above is contrary to the predictions of the model.
Explanation:
The budget deficit is when the government spends more than the revenue it makes. Based on the information given, the trade deficit of the United States will grow.
Furthermore, the real exchange rate of the dollar will appreciate and the net capital outflow of the United States will fall as imports will be more than goods exported.
Therefore, the correct option is "None of the above is contrary to the predictions of the model".
Answer:
d. $920 increase liabilities, increase expenses
Explanation:
The journal entry is given below:
On March 31
Interest Expense Dr. $920 ($92,000 × 4% × 3 ÷ 12)
To Interest Payable $920
(being interest expense is recorded)
Here interest expense is debited as it increased the expense and credited the liabilities as it also increased the liabilities
Therefore the option d is correct
Answer:
Option (b) is correct.
Explanation:
At selling price = $1 and No. of units sold = 75 cookies,
Total revenue = selling price × No. of units sold
= $1 × 75 cookies
= $75
At selling price = $0.50 and No. of units sold = 200 cookies,
Total revenue = selling price × No. of units sold
= $0.50 × 200 cookies
= $100
Therefore, there is a rise in the total revenue from $75 to $100 and hence, price elasticity of demand for sugar cookies is elastic.