The answer is B. accurately reflect the change in production.
Answer: c) Aggregate demand shifted out, causing GDP to rise
Explanation:
If the Fed increases money supply such that it moves from MS2 to MS3, there will be more money in the economy which would reduce the cost of borrowing.
Both people and firms will therefore borrow more to both consume and invest(both components of Aggregate demand) and this will lead to a rise in Aggregate demand causing it to shift out. The GDP will therefore rise as a result.
Answer:
B. II or III
(Either her passport or Social Security Card)
Explanation:
Yes, as Miranda has left her drivers's license at home, she still can open a checking account. For this particular purpose, an identity vitrification is required which she can provide with the her passport or Social Security Card. Either one them can serve the required purpose of opening a checking account. Therefore, she is not required to produce only the driver's license, consequently, the right option here is B.
Answer:
The Operating Activities Section of the Statement of Cash Flows, using the indirect method:
Net Income $210
Changes in working capital:
Accounts Receivable -100
Inventory 110
Salaries & Wages Payable 80
Net cash flow from operating $300
Explanation:
In preparing the operating activities section of the Statement of Cash Flows, two methods are used. The direct method and the indirect method.
The indirect method starts with the net income as the base and converts the income into cash flow through the use of adjustments. The net income is first adjusted with non-cash items (such as depreciation expense) as well as non-operating gains and losses. The direct method only takes the operating cash transactions into account to produce the cash flow from operations. However, it is required that the direct method must provide a reconciliation of net income to the net cash provided by operations.