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lana66690 [7]
3 years ago
8

How do changes in the money supply affect people and businesses?(please help! 80)

Business
1 answer:
slega [8]3 years ago
6 0
Increase in money supply will result to result to lower interest rates. These will encourage individuals and business to avail of loans since interest rates are low. However, proper computation must be made in order to determine the level of increase in money supply. Unchecked increase in money supply may result to inflation.

Decrease in money supply will result to higher interest rates. Higher interest rates will encourage individuals or businesses to deposit their money in the banks because their deposits will earned high interests.
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Answer:

On October 01, 2017

The amount actually borrowed that is $ 701,000 will be recorded as liability/note payable on october 01, 2017. The following accounting entry will be passed

Debit Cash Asset           $ 701,000

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10. Which of the following scenarios would best exemplify Adam Smith's view of best serving the
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3 years ago
Suppose Scott has a budget of $56 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently inc
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