Even though the Phillips curve is an empirical model has historically shown that the rate of unemployment and the rate inflation is inversely proportional, this is only observed in the short-run. In a graph, this is shown as non-linear.
The Long-run Phillips curve, on the other hand, is linear. This means that there's no constant trade-off with regard to inflation & unemployment.
Answer:
$7,500,000
Explanation:
Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,500,000 injection into the money supply results in an overall increase of $7,500,000 in demand deposits
From the stated assumptions in the question,we will use the money multiplier to calculate the eventual effect of the $1,500,000 injection into the money supply.
Money multiplier can be calculated using this formula 1/r (r is the required reserve ratio)
Therefore, the resulting change in demand deposits is as follows:
Change in Demand Deposits = Change in Fresh Reserves ×1/r
= $1,500,000×1/0.20
= $7,500,000
Answer:
Health reimbursement account
Explanation:
The health reimbursement account is a type of health benefit plan which is funded by the government of the US.
In this benefit plan, the government reimburses the medical expenses that have been paid by the employer from his earnings.
Also, in some cases, the government pays the premium of the health insurance.
Answer:
A. $120,000
B. $0
C. $120,000
Explanation:
A. Calculation to Determine NP’s recognized gain
Using this formula
Recognized gain =Insurance reimbursement-Adjusted basis
Let plug in the formula
Recognized gain =$650,000-$530,000
Recognized gain=$120,000
B. NP will not recognize the realized gain of the amount of $120,000 ($650,000-$530,000) reason been that NP have spent the amount of $650,000 on the replacement of property.
C. NP will have to recognize the whole amount of the gain realized gain which is $120,000 ($650,000-$530,000) reason been that replacement property was not acquired within the taxable year when the gain was been realized
Answer:
Statement of Cash flows
Explanation:
The statement of cash flows shows the activities responsible for the change in the amount of cash held by an organization between the beginning and end of a period.
It is usually prepared using the direct and indirect methods.
The activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.
The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.
The investing activities include cash flows from the disposal and purchase of assets etc
The financing activities includes cash flows from the disposal and sale of shares etc.
Hence when a company wants to determine how its operating, investing, and financial activities affect cash during an accounting period, it will have a prepared statement of cash flows.
