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3 years ago

The idea that the money supply does not affect real economic variables is called:________

Business

1 answer:

Sergio [31]3 years ago

3 0

Answer:

The correct answer is letter "B": monetary neutrality.

Explanation:

Austrian economist Friedrich A. Hayek (1899-1992) referred to monetary neutrality as a theory that states the changes in the money supply do not affect the prices of goods, services, wages but no the economy as a whole. According to Hayek, printing more money could increase the demand affecting some economic variables (such as the mentioned above), but in the long run, it does not have a relevant impact.

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The Claxton Company manufactures children's toys and also has a division that makes automobile parts. Due to a change in its str

Kryger [21]

Answer:

B. Report it as a discontinued operation.

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3 years ago

On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 16,000, $7 par, common sha

Otrada [13]

Answer:

See the answers and explanation below.

Explanation:

a. the necessary journal entries assuming a small (10%) stock dividend

Date Details Dr ($) Cr ($)

Sept. 1 Stock Dividends (16,000 * 36 * 10%) 57,600

Common Stock (16,000 * 7 *10%) 11,200

Additional Paid-in Capital - Common Stock 46.400

To record a small (10%) stock dividend on common stock. .

b. the necessary journal entries assuming a large (100%) stock dividend

Date Details Dr ($) Cr ($)

Sept. 1 Stock Dividends (16,000 * 7 * 100%) 112,000

Common Stock (16,000 * 7 *10%) 112,000

To record a large (100%) stock dividend on common stock. .

c. the necessary journal entries assuming a 2-for-1 stock split.

"No journal entry required"

Note: Although no journal entry is required here but the number of common stock will increase to 32,000 (i.e. 16,000 * 2 = 32.00).

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3 years ago

If a sole proprietorship fails which of the owner's assets may be lost

bulgar [2K]

They can lose their personal assets.

4 0

3 years ago

In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clien

romanna [79]

Answer:

Accrual shows face amount as revenue

revenue = $25,000

(12,000) (7/36)= $2,333 (regognized in 2017)

Total income reported in 2017 = $27,333

The next year she would show the remainder of 12,000 from 26 month contract

For tax purposes, max of 2 year deferral for payment recieved in advance.

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3 years ago

A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000

Thepotemich [5.8K]

Answer:

Incremental cost

Explanation:

The Incremental cost is the cost that is to be incurred for producing an additional unit of product

Here the company considered a new project which cost $19,000 so this is an example of an incremental cost as the additional cost is incurred for producing additional units

Therefore the given situation represents the incremental cost

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3 years ago