Answer:
C) a reduction in the saving rate will have an ambiguous effect on (C/N)*
Explanation:
The steady state consumption refers to the difference between how capital wears out or depreciates vs total output. In order to keep a steady state consumption, the savings rate (which equals investment) must be enough to replace any worn out or completely depreciated capital.
Since the consumption rate is already higher than the steady state consumption, the effect of a decrease in the savings rate is ambiguous. Every dollar earned by a household is either spent or saved, and in order for savings to decrease, spending must increase.
But in this case, the spending level is already too high. A decrease in savings should increase consumption but the effects of the increase in the capital labor ratio and the per capita consumption are not certain.
Answer:
The question is <em>"Record the transactions on April 1 and April 10. View transaction list Journal entry worksheet Record the sale on April 1."</em>
Date Account Title and Explanation Debit Credit
April 1 Account receivables $7,000
Sales revenue $7,000
April 10. Cash ($7,000*98%) $6,860
Sales discount ($7,000*2%) $140
Account receivables $7,000
Answer:
Limited liability means the business owners' liability for debts is restricted to the amount they put into the business. With unlimited liability, the business owner is personally responsible for any loss the business makes.
Explanation:
The settlement option that provides for ongoing payments for
a period of time is called annuity. The annuity is a type of insurance contract
in which they provide an individual an annual income for a long period of time
such as an example of this is a pension.
