Answer:
D. agents will immediately adjust their expectations of inflation up.
Explanation:
Expansionary monetary policies are geared towards stimulating economic growth. The Fed can impose lower interest rates or purchase bonds and securities in open market operations as expansionary tools. Lowering interest rates encourages banks and other lending institutions to lend money to firms and households.
Purchasing bonds and securities adds money to the banking system. The increased money will be loaned out to businesses and individuals. The availability of low-cost credit motivates firms to borrow and expands their business capacities. When households borrow with ease, it leads to an increase in consumption expenditure. These actions result in too much money in circulation, which is inflation.
Answer:
B. The lessor does not have the right to stop delivery in transit due to the lessee's breach of the lease agreement; instead, the lessor must deliver the goods to the lessee in spite of the breach, and then sue the lessee for damages.
Explanation:
During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.
Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point
Answer:
Under classified balance sheet, common stock and retained earnings are reported separately
Explanation:
Under equity section of balance sheet, common stock and retained earnings are line items i.e they are reported under equity section of balance sheet separately.
The total of these two should also be separated i.e the total is a line item also. And this forms the total equity provided there are no other line items for the for the period again.
Answer:D. 0.05 x (l-t*) = 0.07
Explanation: The break even tax rate is the tax rate at which industry players don't find it advantageous or disavantageous to invest in an economy, any tax rate higher than the break even tax rate will cause investors to loss certain amount of profits.
A tax rate below the break even tax rate will cause investors to want to make investment decisions as it will be beneficial and profitable to invest more money into the economy.
Calculation:
7/100=5/100(I-t*),the break even tax rate can be expressed as
=0.07=0.05*(I-t).
Answer:
c. debit to Payroll Tax Expense for $1,050.
Explanation:
The payroll tax expense includes various expense like - Social security tax payable, medicare tax payable, unemployment tax payable, etc.
So, we consider these items only.
The journal entry is shown below:
Payroll expense A/c Dr XXXXX
To Social security taxes payable A/c XXXXX
To Medicare taxes payable A/c XXXXX
(Being payroll expense is recorded)
All other information which is given is not relevant. Hence, ignored it
