Outflow of financial capital : Depreciating value of the U.S. dollar : Increased net exports
<u>Explanation:</u>
There will be an immediate outflow of financial capital due to the fall in the interest rates as it will be no more profitable in relation to other nations. Due to the capital outflow, the US currency demand will fall and results to the decrease in the exchange rate (price) or it can be said that the exchange rate depreciates.
This depicts that, the US exports will be cheaper as the US dollar price or exchange rate decreases. In other words, it can be stated that the value of the other nations’ currencies will increase as compared to the US currency.
This will make it easier to purchase the same baskets for reduced bill amount and thus the exports may get increased.
Answer:
<em>(A) realize financial rewards.</em>
Explanation:
In <em>theory (textbook)</em> the no.1 reason that people become entrepreneurs is to achieve <em>maximum return</em>. The concept of higher risk, higher return is the key here. Business as compared to Services and Profession, has the highest risk thereby giving the best returns out of the three.
However, in <em>practicality</em> people adopt business to <em>pursue their own ideas, gain prestige, be their own boss, continue a family tradition and also to realize financial rewards. </em>
Answer:
The price level doubles.
Explanation:
The market for money is like any other market for goods or services, except that in this specific market, the Fed is a monopoly and everyone else are the consumers. If the demand for money increases, while the supply remains the same, the nominal value of money increases (interest rate increases). This combination of higher demand and higher costs increase the inflation rate which represents the general price level.
The inflation rate basically shows us the difference between the demand for money and the supply of money, and if that difference is two times, then the inflation rate will also double. When the inflation rate ,doubles, it means that the general price level doubles.
Answer:
interest expense 3,654 debit
cash 3,654 credit
Explanation:
For the first 6 month the note will pay 5.80% interest for the subsequent 6 month will pay at 6.70%
We do for the period Jan 2,2017 to June 30,2017
variable LIBOR rate:
126,000 x 5.80% / 2 = 3654
fixed rate of the promissory note:
126,000 x 6.00% / 2 =3,780
difference: 126 in our favor.
We pay the variable rate, not the fixed rate. THerefore, we made the entry for the variable rate
Incorrect. You don’t need a comma after “crocodiles” or before “other”