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mrs_skeptik [129]
3 years ago
15

Suppose the economy is in long-run equilibrium at the level of potential output. What will be the long-run effect of an expansio

nary monetary policy?
Business
1 answer:
nirvana33 [79]3 years ago
3 0

Answer:

Higher prices.

Explanation:

Expansionary monetary policy seeks to grow the economy by increasing the money supply, lowering interest rates, and stimulating demand. As we know from the supply/demand curves, higher demand leads to higher price levels.

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Carmichael Company is considering purchasing a piece of equipment for $60,000. It expects the equipment will last 12 years (and
nalin [4]

Answer:

Initial outlay = $60,000

Annual net income before tax = $7,200 per annum

Depreciation = <u>Cost - Residual value</u>

                        Estimated useful life

                      = <u>$60,000 - 0</u>

                           12 years

                     = $5,000 per annum

Annual net cashflow before tax

= Annual net income before tax + Depreciation

= $7,200 + $5,000

= $12,200

Explanation:

In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.

4 0
3 years ago
Companies have the opportunity to use varying amounts of different sources of financing, including internal and external sources
Mrrafil [7]

Answer:

A) Company A is the one that is financially leveraged.

Where there is the presence of debt in the capital structure of a firm, that firm is said to be Financially leveraged.

B) A is true.

A company's return on equity or expected returns increases because the use of leverage increases stock volatility. Volatility increases its level of risk which in turn increases returns. This happens only if the company is operating an ideal level of financial leverage.

On the other hand, however, but excessive debt can increase the risk of default and can lead to low returns or even bankruptcy.

Cheers!

5 0
3 years ago
Carolina Biological Supply Company sells science instructional materials. It wants to grow beyond the current customer base and
irina [24]

Answer: B) identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity

Explanation:

The options for the question are:

A) research and validate marketing opportunity, identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity

B) identify business needs, segment total market, profile target customer segment, research and validate marketing opportunity

C) profile target customer segment, identify business needs, segment total market, research and validate marketing opportunity

Market targeting simply has to do with selecting target market from whole market and it should be noted that target market are the people that company or organization wants to satisfy.

In the scenario above, the first thing is to identify business needs. Every successful company has to identify its business needs. After then, market segmentation takes place and this is when potential customers are being divided into segments or groups as a result of the features they possess like location and interests.

After then, the target customer segment are being profiled. This is done in order to know more about the customers and to also tailor the products towards the requirements of the segments. Lastly, the marketing opportunity is being researced and validated.

3 0
3 years ago
The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:
Alina [70]

Answer:

1. WINFREY TOWING SERVICE

Statement of Comprehensive Income

                                           $

Service revenue               10,800

Rent expense                    (550)

Salaries expense              (1,900)

Dividends paid                  <u>(4,000)</u>

Net income                        <u> 4,350</u>

Statement of Retained Earnings

                                             $

Retained earnings b/f      3,900

Add: Net income               4,350

Retained earnings c/f       8,250

2. Statement of retained earnings report changes in retained earnings of a company in a given accounting year.

Explanation:

In this question, we need to obtain the net income of the company, which  is service revenue minus expenses minus dividend. Then, the statement of retained earnings is prepared by taking cognisance of the retained earnings brought forward and add the net income for the year.

7 0
3 years ago
Excom sells radios and each unit carries a two-year replacement warranty. Typically, 5% of the radios sold need to be replaced c
Leona [35]

Answer:

The amount in September would Excom debit Product Warranty Expense is $805

Explanation:

According to the given data In order to calculate the amount in September would Excom debit Product Warranty Expense we would have to make the following calculation:

Product warranty expense = 700 radios * 5% * cost per radio $23

Product warranty expense =35*$23

Product warranty expense =$805

The amount in September would Excom debit Product Warranty Expense is $805

7 0
3 years ago
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