Answer:
the options are missing, so I looked for them:
a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.
d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.
the answer is:
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
Explanation:
The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.
You must consider both consequences, the positive and the negative. Then you must think of a way that you will have a win-win situation or just do the compromising to be able to solve the problem and have a faster solving process.
Answer:
$337.50
Explanation:
the premium on a three year policy = $1,350
premium per year = $1,350 / 3 = $450
premium per month = $450 / 12 = $37.50
Since the premium covered April to December, 9 months of insurance expense are accrued.
insurance expense for 9 months = $37.50 x 9 = $337.50
The journal entries should be:
April 1, purchase a 3 year insurance policy:
Dr Prepaid insurance 1,350
Cr Cash 1,350
December 31, accrued insurance expense:
Dr Insurance expense 337.50
Cr Prepaid insurance 337.50
Answer:
The answer is D I would say.
