A higher interest rate is one economic mechanism by which government borrowing can crowd out private investment. This is further explained below.
<h3>What is the economic mechanism?</h3>
Generally, A mechanism is a mathematical representation of the organizations that govern and coordinate economic activity.
In conclusion, Increasing the interest rate is one of the ways in which the government may stifle private sector investment. This will be detailed in further detail in the following paragraphs.
Read more about the economic mechanism
brainly.com/question/14529441
#SPJ1
Companies felt that unions were conspiracies which interfere with property right because, unions usually challenge the employers about the working conditions of their workers and the manner the employers treat their workers; they fight for the rights of the worker. Because of this, employers usually do all they can to stop unions from forming.
Answer:
(C) Debit Cash, credit Unearned Revenue.
Explanation:
The journal entry is shown below:
Cash A/c Dr $2,000,000
To Unearned revenue A/c $2,000,000
(Being the receipt of cash is recorded)
Since the cash is received so we debited the cash account as it increases the current assets and credited the unearned revenue account as it is a current liability account so the same is to be credited
Answer:
Option C). This is a capital lease because it meets at least one of the four capital lease criteria.
Explanation:
In the following situations, the lease transactions are called Finance Lease.
i) The lessee will get the ownership of leased asset at the end of the lease term.
ii) The lessee has an option to buy the leased asset at the end of lease term at price, which is lower than its expected fair value at the date on which option will be excercised.
iii) The lease term covers the major part of the life of asset.
iv) At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset.
In the given question, Present value of minimum lease rental amounting to $ 78 million covers substantially 94 % portion of the initial fair value of leased asset. Accordingly, last condition / last situation mentioned above to treat lease as finance lease is satisfied in the given question. In other words, out of four capital lease criteria mentioned above, fourth criteria / fourth condition (At the beginning of lease term, Present value of minimum lease rental covers substantially the initial fair value of the leased asset) is satisfied in this given question.
Present value of minimum lease rental as a percentage of initial fair value of leased asset :-
= (78 Million / 83 Million ) * 100
= 0.94 * 100
= 94 % (approx).
Lease in given question is capital lease because it meets at least one of the four capital lease criteria.
