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Gnesinka [82]
3 years ago
7

Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than

normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?
A. Increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation.
B. Increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment.
C. Increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation.
D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Business
1 answer:
Flura [38]3 years ago
7 0

Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.

Explanation:

M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.

From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.

When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.

Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.

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Dish Corporation acquired 100 percent of the common stock of Toll Company by issuing 10,000 shares of $10 par common stock with
ASHA 777 [7]

Answer:

a) $2,550,000

b) $1,550,000

c)$1,000,000

d) Goodwill is $50,000

Explanation:

Part A) Determine the total Assets of the business to be used in the consolidated balance sheet

The consolidated Total Asset for Dish Corporation and Toll Company is as follows:

The Book value of the assets of Dish + Toll's assets fair value + The goodwill

How to calculate the goodwill

First, dish paid the following for acquiring Toll = $10,000 @ $60 = $600,000

Secondly, The net worth of Toll at the time was = $1,300,000- $750,000 (Assets- Liabilities)= $550,000

The Good will = $600,000- $550,000

= $50,000

<u>Calculate Consolidated Asset</u>

The Book value of the assets of Dish + Toll's assets fair value + The goodwill

= $1,200,000 + $1,300,000 + $50,000 = $2,550,000

Part b) Total Liabilities

The book value of Dish Corporation Liabilities + The Fair value of Toll Liabilities

= $800,000 + $750,000 = $1,550,000

Part c) The total or consolidated Equity =

The formula for equity at this point = The Total Assets (Part A) - The Total Liabilities (Part b)

= $2,550,000 - $1,550,000

=$1,000,000

7 0
3 years ago
Designing an initial marketing strategy for a new product based on the _____ is called marketing strategy development
Aleks [24]

Answer:

b. product concept

Explanation:

3 0
3 years ago
A $100 petty cash fund has cash of $17 and receipts of $86. The journal entry to replenish the account would include a :
Paladinen [302]

Answer:

The correct option is C, credit to cash over and short for $3

Explanation:

The requirement targets the balancing entry in the cash account,with cash of $17 in the petty cash account coupled with receipts of $86, the total amount in the petty cash is $103 ($86+$17) and the established float is just $100, which implies that the petty cash has an excess fund of $3 that must be returned to the main cash account.

The excess is the difference between $103 cash in the petty cash account and the maximum float of $100($103-$100)

4 0
3 years ago
Read 2 more answers
Hoosier Corporation declared a 2-for-1 stock split to all shareholders of record on March 25 of this year. Hoosier reported curr
BaLLatris [955]

Answer:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders.

Explanation:

Hoosier does not adjust its E&P for the stock dividend because it is not taxable to the shareholders. This conclusion is based on the definition of taxable dividends.

6 0
3 years ago
Platinum, Inc. is considering two mutually exclusive projects, X and Y. Project X costs $95,000 today and is expected to generat
Aliun [14]

Answer:

EAA = $17,115.23

Explanation:

Please check the attached image for the formula of the equivalent annual annuity 

To calculate the EAA,  the NPV of project Y has to be determined:

Net present value can be calculated using a financial calculator:

Cash flow in year 0 = $-120,000 

Cash flow in year 1 = $64,000

Cash flow in year 2 = $67,000

Cash flow in year 3 = $56,000

Cash flow in year 4 = $45,000

I = 15%

NPV = $48,863.60

EAA = $17,115.23

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0
3 years ago
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