Answer:
A. - The net public debt decreases
The net public debt decreases because the government has obtained more funds in tax revenue. For this reason, the government will likely run a budget surplus.
B. - The net public debt increases
The government was already running a budget deficit (albeit a small one). With the effects of the hurricane, the government will have to spend more to help the people affected, and will likely have to borrow even more, increasing its deficit.
C. - The net public debt remains unchanged
There was a transfer of funds from one government agency to the other, and the net effect of such transfer is likely to be very small to make any significant change in the net public debt. The net public debt remains unchanged.
Answer:
(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.
-<u> Increase in exports while no change in imports</u>.
(b). The Sony pension fund buys a bond from the U.S. Treasury.
- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.
(c). An American investor buys a controlling share in a South Korean electronics firm.
- <u>Increase in Net Capital outflow for the U.S</u>.
Explanation:
Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.
In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.
Answer:
C. decrease
Explanation:
In the case when the money demand and the money supply model is used so the open market purchase would result the interest rate of equilibrium to decrease as if there is an open market purchase so it rise the money supply due to which the supply curve of the money move shiftward
Therefore the rate of interest should be decreased
size of the business, because resources are likely limited for a family enterprise
Answer and Explanation:
The journal entries are shown below;
On Jan 1, 2020
No journal entry is required
On Dec 31, 2020
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
On Dec 31, 2021
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
