If there is an increase in government spending, the new equilibrium will be at <u>B</u> holding everything else constant.
<h3>What is government spending?</h3>
Government spending can be the defined as the money spent on goods and service or money spent by government to provide services to the public.
An increase in government spending will tend to lead to increase the demand of goods and service which inturn means that consumption expenditure will as well increase.
Inconclusion the new equilibrium will be at <u>B</u> holding everything else constant.
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Answer:
The correct answer is letter "A": Information presented by a company applies the same accounting treatment to similar events, from period to period.
Explanation:
In accounting, consistency is the principle that states a company must use an accounting method for book-keeping its transactions and the same method should be used from one period to the following. However, the consistency principle allows the company to change the current method for a more preferred method.
Answer:
Oct 1.
Cash $19,900 (debit)
Common Stock $19,900 (credit)
Oct 3.
Office Furniture $2,100 (debit)
Trade Payable $2,100 (credit)
Oct 6.
Trade Receivable: N. Fennig $3,250 (debit)
Revenue $3,250 (credit)
Oct 27.
Trade Payable $900 (debit)
Cash $900 (credit)
Oct 30.
Salary Expense : Administrative Assistant $2,650 (debit)
Cash $2,650 (credit)
Explanation:
In all non-cash entries remember to observe the <em>Accrual</em> or <em>Matching</em> Principle.Thus, transactions must be recorded when they accrue or incur not when they are paid.
At the end of 2008, the Fed took action to significantly lower the federal funds rate.The best way to describe this action is as offensive.
Quantitative facilitating is a strategy when a national bank endeavors to invigorate the economy by purchasing long haul protections.The Fed wanted to lower the interest rates on 10-year Treasury notes and mortgages.
In response to the Great Recession, what actions did the Federal Reserve take?
To lower interest rates, it bought on the open market.
The Federal Funds Rate—also known as the Federal Funds Target Rate or the Fed Funds Rate—is set by the Federal Open Markets Committee (FOMC) to direct overnight lending among U.S. banks.It is established as a range between two limits.Currently, the federal funds rate is 3.75 percent to 4%.
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