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Alona [7]
3 years ago
11

When the economy is operating at point C, the Federal Reserve may decrease the discount rate to

Business
1 answer:
brilliants [131]3 years ago
7 0

Answer:

D ; increase growth

Explanation:

The discount rate is one of the tools that the Federal Reserve uses to direct monetary policy.  Banks are subject to minimum reserves requirements. If a bank falls below this minimum, it can borrow from the banks with a surplus,  or borrow from the federal reserve. If it borrows from the Fed, the interest rate that applies is the discount rate. The discount rate is always higher than the fed fund rate; hence, banks use it as a last resort.

The discount rate and the fed rate have similar effects on the economy.  The Fed uses the discount rate to regulate the money supply in the country. When the growth in slow, the fed will reduce the discount rate.  A low discount rate means the cost of borrowing money goes down. The impact is that individuals and businesses will afford to borrow money for consumption and investment.

Increased levels of investments and consumption will mean a higher GDP, which is growth.

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Stella is 16 years old. She earned $3,500 this year at a local ice cream shop, and another $3,500 in cash babysitting her neighb
andrew-mc [135]

Answer:She does not have to file a tax return.

Explanation:She is below the poverty line.

4 0
3 years ago
Read 2 more answers
Wanda green wants to take out a 4 year loan to purchase a car. what type of computation would she use to calculate her monthly p
sashaice [31]

The answer is <u>"Present value of an annuity".</u>


The present value of annuity formula determines the estimation of a progression of future occasional installments at a given time. The present estimation of annuity recipe depends on the idea of time estimation of cash, in that one dollar show day is worth more than that same dollar at a future date.  

Similarly as with any financial related formula that includes a rate, it is critical to ensure that the rate is reliable with alternate factors in the equation. In the event that the installment is every month, at that point the rate should be every month, and likewise, the rate would should be the yearly rate if the installment is yearly.

6 0
3 years ago
During its first year of business, Oceanic, Inc. has sales of $300,000 and pays warranty claims of $10,400. Oceanic offers a one
Helga [31]

Answer:

$4,600

Explanation:

The computation of the balance in Oceanic's Warranty Liability account is shown below:

= Sales × estimated percentage - warranty claims

= $300,000 × 5% - $10,400

= $15,000 - $10,400

= $4,600

We simply find out estimated warranty cost and then deduct the warranty claims so that the accurate value can come.

Thus, All the items are need to be considered for the computation part.

5 0
2 years ago
Cypress Corporation, a calendar year end corporation, has an AMT credit carryforward from 2018 (the credit arose in 2017) in the
Zinaida [17]

Answer: $3,650

Explanation:

Alternative Minimum Tax ( AMT) can be used to lower the amount of taxes payable.

It is created when the tax payable is lower than AMT, it is carried forward and can reduce taxes Payable in future by the amount of the AMT credit.

The current AMT cycle of 2017 - 2022 allows for AMT credit to be refunded up to 50% of the excess of AMT credit over the normal tax liability with 100% being allowed in 2021.

The US corporate tax rate for 2019 is 21%.

Taxable Income = $170,000

Tax liability for 2019 = $170,000*21%

=$35,700

With a current tax liability of $35,700 being less than the AMT of $43,000, AMT will offset it.

Solving for yhe excess AMT Credit we have,

Excess AMT credit = AMT credit carryforward - Tax liability in 2019

= 43,000 - 35,700

= $7,300

The AMT Credit refunded can be calculated as,

AMT credit refunded = 50%*Excess AMT credit

= 50%*7,300

= $3,650

$3,650 is the amount of refund Cypress can expect to receive from its 2019 tax return filing.

5 0
3 years ago
Baldwin Company had the following balances and transactions during​ 2019: Beginning Merchandise Inventory as of January​ 1, 2019
lakkis [162]

Answer:

Cost of Goods Sold on the income statement for the year ending December​ 31, 2019 is $ 24,010

Explanation:

First in First Out is an Inventory management system that is build on the idea of selling first the Inventory that came earlier or acquired first.

Perpetual Inventory System Records cost of sale of inventory with each sale

Sale of Inventory was made on March 10,2019 and October 30,2019. It is important to keep track of the cost of sale of inventory on these dates and then find the total which will be presented as cost of sales in the financial Statement

<u>Cost of Goods Sold</u>

March 10,2019 : 80 units × $82                 6,560

October 30,2019 : 45 units × $ 82            3,690

                               160 units × $ 86         13,760

Total Cost of Goods Sold                         24,010

4 0
2 years ago
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