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umka21 [38]
2 years ago
8

If both the production of goods and services increase and prices rise, then the change in nominal GDP

Business
1 answer:
IceJOKER [234]2 years ago
5 0
The answer is B. accurately reflect the change in production.
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Why does the federal reserve choose to increase the money supply?
SVETLANKA909090 [29]

To control the supply of money to help stabilize the economy

Explanation:

An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and this stimulates spending.

7 0
2 years ago
Adjustable-rate mortgages often start out low and then "adjust" to a higher rate after a few years. Fixed-rate mortgages are gua
Brums [2.3K]

It all depends on the degree of consumer risk aversion. Some consumers are more likely to be at risk than others. If my propensity for risk in the face of the possibility of a premium is greater, I will prefer the adjustable hypotheca, which gives me the chance to pay less in the end. If I am a risk averse consumer, I will prefer a fixed hypotheque that will give predictability to my budget.

5 0
2 years ago
James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to
boyakko [2]

Answer:

The total contribution to GDP is $22000.

Explanation:

Two houses contribute to GDP = $10000 + $12000

=  $22000 per year.

The GDP refers to the total expenditure on the goods and services produced. Moreover, rent is also included in GDP calculation. Thus the total contribution of two houses to GDP is $22000.

5 0
2 years ago
Record transactions of purchasing company. On October 5, Splish Brothers Company buys merchandise on account from Bramble Compan
Vlad [161]

Answer:

See explanation section

Explanation:

October 5       Merchandise Inventory       Debit      $4,700

                       Accounts Payable - Bramble Company    Credit    $4,700

<em>To record the merchandise Inventory purchase on account. As the company uses perpetual inventory system, merchandise inventory becomes debit instead of purchase account.</em>

October 8        Accounts payable         Debit       $720

                        Merchandise Inventory       credit         $720

<em>To record the return of defective goods to Bramble Company. (Using perpetual inventory system)</em>

8 0
3 years ago
The Bethlehem Inn is an all-equity firm with 9,000 shares outstanding at a value per share of $26.80. The firm is issuing $39,93
IgorLugansk [536]

Answer:

Value of equity = 9,000 x $26.80 =  $241,200

Value of debt issued = $39.932

Value of equity after debt repayment = $241,200 - $39,932

                                                                          =  $201,268                                                                                                                                                                                                                                                                                

No of equity outstanding after debt repayment = <u>$201,268</u>

                                                                                    $26.80

                                                                               =  7,510 shares

Explanation:

In this regard, there is need to determine the value of equity after debt repayment, which is value of equity minus value of debt repaid. Then,we  will divide the value of equity after debt repayment by the value of equity per share. This gives the number of shares outstanding after debt repayment.

3 0
3 years ago
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