Answer:
Options a and b are correct.
Explanation:
Capital investments are relatively inexpensive.
Capital investments have multiyear life spans, so mistakes linger for a long time.
Answer:
The correct answer is option C.
Explanation:
A decrease in the money supply would reduce the availability of credit in the market. The money supply curve will shift to the left. This would further cause the interest rate to increase.
This increase in the interest rate would increase the cost of borrowing. As a result, the cost of borrowing will increase. This will cause the planned investment to decline.
Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.
Explanation:
The Journal entry is given below :-
Bonds payable $2,000,000
To common stock $1,000,000
To Discount on common stock $30,000
To Paid in capital $970,000
The calculation of bonds payable, common stock is below:-
For bonds payable
= 2,000 × $1,000
= $2,000,000
For common stock
= 2,000 × 50 × $10
= $1,000,000
For paid in capital
= $2,000,000 - ($1,000,000 - $30,000)
= $970,000
The sub-treasury plan, the federal government would hold crops in public warehouses and issue loans on their value until they could be profitably sold.
<h3>Why did Farmers face an increasing debt load in the late 1800s?</h3>
They were caught between increased costs and falling prices.
<h3>
Why did the Grange movement focus on reducing prices that railroads and grain elevators charged? </h3>
Farmers relied on railroads and grain elevators but were forced to pay higher than usual rates.
<h3>
To learn more about sub-treasury system visit:</h3>
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