Answer:
Debit Interest Expense, credit Cash and Discount on Bonds Payable.
Explanation:
The journal entry that a company needs to record for payment of interest is: a debit to the interest receivable account and a credit to the interest income account.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to cash.
The journal entry that a company needs to record for interest expense is: a debit to interest expense and a credit to discount on bonds payable.
Answer: Option (C) is correct.
Explanation:
Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.
A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing the government spending by $50 billion.
B. It is an expansionary fiscal policy.
D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.
Therefore, Option (C) is having the most contractionary fiscal policy.
Answer:
a) 5%; 55%
Explanation:
The unemployment rate is calculated by dividing the number of people unemployed by the number of people in the workforce:
1/20= 0,05*100= 5%
The participation rate is calculated by dividing the number of people employed by the number of people in the workforce:
11/20= 0,55*100= 55%
Answer:
A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa
A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.
Explanation:
Real word example of change in demand :
Changing Tastes or Preferences
From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.
Simply put it this way> Change in quantity demanded : Price change, quantity demanded change
Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference
Answer:None of the above= 10% and 33.33%
Explanation:
Coverage ratio EBIT/Interest expenses
Change in numerator =3/30*100
Change in denominator= 2/6*100
