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uranmaximum [27]
2 years ago
12

Ex-post (in an accounting sense), Savings __________ equals Investment. However, ex-ante, __________ desired savings may very we

ll be different from __________ desired investment. It is the __________ which adjusts to make desired savings equal to desired investment.
Business
1 answer:
Alexxx [7]2 years ago
6 0

Ex-post (in an accounting sense), Savings ALWAYS equals Investment. However, ex-ante, DESIRED savings may very well be different from  DESIRED  investment. It is the REAL INTEREST RATE which adjusts to make desired savings equal to desired investment.

Explanation:

  • In the basic, closed economy model, Savings=Investment. The reason for this is because, in this model, growing capital stock is not the only item taken into account in Investment. The other item is inventory accumulation.
  • Savings is whatever is left over after income is spent on consumption of goods and services, investment is what is spent on goods and services that are not 'consumed', but are durable.
  • Equilibrium in the goods market can be expressed in two equivalent ways: (1) desired national saving is equal to desired investment; AS = AD.
  • The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.

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On April 1, 2021, Austere Corporation issued $330,000 of 11% bonds at 106. Each $1,000 bond was sold with 30 detachable stock wa
blondinia [14]

Answer:

Austere Corporation

The amount of the proceeds from the bond that should be recorded as an increase in liabilities is:

= $320,100.

Explanation:

a) Data and Calculations:

The bonds issued = $330,000 at 106

Number of $1,000 bonds issued = 330 ($330,000/$1,000)

Market value of each warrant = $3

Proceeds from issue of bond = $330,000*106% = $349,800

Fair value of warrant issued = 330*30*$3 = $29,700

The bond issue liability = $349,800 - $29,700 = $320,100

7 0
3 years ago
Which of the following represents an opportunity for generating a new product?
Alexus [3.1K]

The correct answer is D. All of these.

7 0
3 years ago
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​
Vikentia [17]

Answer:

A larger industrial and service sector, and a larger number of people working outside of agriculture, can indicate a higher level of industrialization in the economy and vice versa. This means that the size of industrial service and the sector of agriculture employment rate indicates the level of industrialization because if the agriculture employment is higher than the industrial service it means that the country is not fully developed yet and therefore the level of industrialization is lower. But if the industrial service is higher than the agriculture employment that suggests or indicates that the country is developing or developed. For example in the United States the size of the industrial/service sector is much larger than it's agricultural employment and therefore this should suggest that country is much more industrialized or developed and the United States is. In comparison you take a developing country such as Chad and you can see that the agricultural employment is higher than the size of the industrial/service sector and in relation to this you can see that Chad must have a lower level of industrialization and in fact it does.

Explanation:

8 0
2 years ago
The entry to record the use of direct materials in production would include a A. credit to Finished Goods Inventory. B. debit to
earnstyle [38]

Answer:  

B. debit to WIP inventory

Explanation:

The journal entry to record the usage of direct material in production is

Work in Process Inventory                                  Dr.

     To Raw Material Inventory

(Raw materials consumed recorded)

Raw material inventory is an asset. It's consumption should reduce it's balance. A debit increases an asset's balance while a credit reduces it's balance.

Work in process, like raw material is an inventory account i.e an asset. A debit increases their balance whereas a credit reduces it.

Here, raw materials i.e direct material have been issued for production, which would reduce their balance and increase the balance of work in process as finished goods are yet to be made.

3 0
3 years ago
A manufacturer develops bud­gets for the direct materials, direct labor, and overhead that will be required in the produc­tion p
Dominik [7]

Answer:

The correct answer is letter "D": The production budget.

Explanation:

The production budget is the expected production of a manufacturing company. It combines the projection of sales of the firm for the current period and the number of assets needed to achieve the production level necessary. It is important for a company to have a clear idea of what investment will be needed to fulfill those expectations.

5 0
3 years ago
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