Answer:
D) Increase the money supply by buying government securities
Explanation:
When public investment crowds out private investment, it is because the government is making use of all, or most of the supply of loanable funds in the economy. This causes the interest rates to rise, making it more expensive for the private sector to borrow and invest.
The Central Bank can step in and help solve this problem by lowering the interest rate. It can do so by buying government securities. The money used to buy these securities enters the economy, making the money supply grow, including the supply of loanable funds, causing the interest rate to fall.
Answer:
E) illusory correlation
Explanation:
An illusory correlation happens when someone mistakenly believes that the occurrence of one event will result in the occurrence of other unrelated events.
Psychologically every single one of us tends to create a relationship between unrelated events, but some simply go one step ahead and deeply believe in a strict cause-effect relationship.
For example, a lot of people tend to create a relationship between very beautiful women and not being smart. While being pretty has nothing to do with being intelligent. I've met beautiful women that are extremely smart and very capable at work, while other not beautiful women are simply the opposite.
Answer:
Debit Credit
Unearned revenue $2,500
($7,500/3)
Revenue $2,500
Explanation:
The following adjusting entry shall be recorded in the accounts of the Biddle and Biddle, on January 31, in respect of revenue earned by it from accounting services:
Debit Credit
Unearned revenue $2,500
($7,500/3)
Revenue $2,500
Answer:
inflation rate = 4.66%
Explanation:
we can determine the inflation rate using the future value formula:
future value = present value x (1 + i)ⁿ
- future value = $68.69
- present value = $10.61
- n = 41 years
- i = inflation rate ?
$68.69 = $10.61 x (1 + i)⁴¹
(1 + i)⁴¹ = $68.69 / $10.61 = 6.474081056
⁴¹√(1 + i)⁴¹ = ⁴¹√6.474081056
1 + i = 1.0466
i = 1.0466 - 1 = 0.0466 = 4.66%
