Answer:
For economists is important to avoid political interferance in the monetary policy. Populist governments often use the creation of money to justify their political programs, causing inflation and distortions on the market.
In the last report of FOMC is highlighted the behaviour of market labour and the lower expectations of inflation.
Explanation:
There are two tools commonly used in political economy to finance government programs: taxation and paper currency print. When the central bank is not independent, the government has an incentive to print money to fund their programs, causing inflation. In economic science has been demonstrated that inflation is always caused by monetary phenomena.
Answer:
c. Recognition of assets and liabilities
Explanation:
Determining periodic deferred tax is a consequence of difference of tax as per book profit and profit as per income tax norms.
Thus recognition of deferred tax asset or liability is matching of assets and liabilities, as when we recognize deferred tax asset as in the condition that the tax payable as per income tax is less and as per books is more than deferred tax asset arises.
In this case we recognize the asset, then against that asset recognized is income tax payable, further income tax payable is set off against this asset and income tax expense.
The answer is Product franchise. A product franchise is a diversifying assertion where producers enable retailers to disseminate items and utilize names and trademarks. An assembling establishment is a diversifying understanding where the franchisor enables a producer to create and offer items utilizing its name and trademark.
Answer:
A. Asset exchange transaction
B. Asset exchange transaction
C. Investing activity
D. Investing activity.
Explanation:
In the question, the Riley company paid cash to Smally company, and the Smally company paid the amount for the land.
So,
A. For Riley company, it is an asset exchange transaction as the asset exchanges between Riley and Smally company.
B. For Smally company it is an asset exchange transaction as the asset are the exchange between Riley and Smally company.
C. Investing activity. As the Riley company deals in the purchase and the sale of the fixed assets.
D. Investing activity. As the company deals in the purchase and the sale of the fixed assets.
Answer:
The correct answer are option D for both questions.
Explanation:
Recessions is characterized with decrease in consumer and investment spending. During recessions there is a decline in inflation rate and the unemployment rate increases.
While during expansion, there is a boost in economy. So, with increase in investment and production, the unemployment rate falls. There is a rise in inflation rate as well.
Though even in the stages of recovery, the unemployment rate continues to increase because some firms are pessimistic and are operating below their capacity. Also, the rate of growth of labor force is higher than rate of employment growth, which leads to increase in unemployment.
