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3 years ago

The aggregate quantity of goods and services demanded changes as the price level rises because

Business

1 answer:

makvit [3.9K]3 years ago

4 0

Answer:

Explanation:

The aggregate quantity of goods and services demanded changes as the price level rises because real wealth falls causing interest rates to rise, and this in term causes the dollar to appreciate since the interest rates are for products and services within the country and not foreign goods or services. Which as the dollar appreciates it means that foreign goods and services will become cheaper or that their relative price will fall.

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Using the information provided, analyze the affects of Lawry Lawn Service's transactions on the accounting equation.

Arlecino [84]

Answer:

Common Stock $3,400 (credit)

Mower $1,600 (debit)

Revenue Service $1,000 (credit)

Cash $2,600 (debit)

Gas Expense $100 (debit)

Dividends $0

Explanation:

See below the posting i have done to the ledger accounts.

Mower T - Account

Debit :

Accounts Payable $1,600

Credit :

Balance c/d $1,600

Revenue Service T - Account

Debit :

Balance c/d $1,000

Credit :

Account Receivable $1,000

Cash T - Account

Debit :

Common Stock $3,400

Credit :

Gas Expense $100

Dividends $700

Balance c/d $2,600

Gas Expense T - Account

Debit :

Cash $100

Credit :

Balance c/d $100

Dividends - T Account

Debit :

Shareholders for dividends $700

Credit :

Cash $700

7 0

3 years ago

Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs:

svlad2 [7]

Answer:

Garida Co.

The project's net present value (NPV) is:

= $57,787

Explanation:

a) Data and Calculations:

Year 1 Year 2 Year 3 Year 4

Unit sales 4,200 4,100 4,300 4,400

Sales price $29.82 $30.00 $30.31 $33.19

Variable cost per unit $12.15 $13.45 $14.02 $14.55

Fixed operating costs $41,000 $41,670 $41,890 $40,100

Year 1 Year 2 Year 3 Year 4

Sales Revenue $125,244 $123,000 $130,333 $146,036

Variable costs $51,030 $55,145 $60,286 $64,020

Fixed operating costs $41,000 $41,670 $41,890 $40,100

Total costs $92,030 $96,815 $102,176 $104,120

Income before tax $23,214 $26,185 $28,157 $41,916

Income tax (25%) 5,804 6,546 7,039 10,479

Net income/cash inflow $17,410 $19,639 $21,118 $31,437

PV factor 0.901 0.812 0.731 0.659

Present value $15,686 $15,947 $15,437 $20,717

Total present value of the cash inflows = $67,787

Less investment cost of equipment = 10,000

Project's net present value (NPV) = $57,787

3 0

3 years ago

Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A ra

Tamiku [17]

Answer:

B. French wines will become more expensive in the United States.

Explanation:

Exchange rate is the rate at which one currency can be exchanged for another during international trade. The strength of a currency determines how much of the other countrie's goods it can purchase.

When the strength of a countrie's currency is high it will purchase more of the other countrie's goods. If however the currency is weak, it will take more to buy the other countrie's goods.

In this case if the dollar falls against the euro, it will take more dollars to buy French wine than before.

For example if a bottle of French wine was $500, after the fall the price may now be $800.

3 0

3 years ago

Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using mon

amm1812

Answer:B. Opponents of active stabilization policy believe that significant time lag in both fiscal and monetary policy often excercebate economic fluctuations.

C. Advocate of active stabilization policy believe that the government can adjust monetary and fiscal policy to counter waves of excessive optimism and pessimism among consumers and business.

Examples of automatic stabilizer

A. Corporate income taxes

B. Personal income taxes

Explanation:

Stabilization policy helps to stabilize the economy during expansionary or deficit period however a lag in the implementation will surely affect getting the right outputs from the implementation.

The economy has inbuilt stabilizer s that tend to correct excessiveness in economy such as the personal and corporate tax . The federal fund rate will be adjusted as the need be to stabilizer the economy even though it can be used as a stabilizer but it's not an automatic stabilizer.

5 0

3 years ago

The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.

Lelechka [254]

Potential energy, kinetic energy

8 0

3 years ago