A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.
<h3>What are automatic stablizers?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.
In an expansion, progressive tax increases the tax paid by citizens and in a contraction, tax paid is reduced and this increases disposable income.
Here is the complete question:
A major advantage of the built-in or automatic stabilizers is that they:
(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.
(b) automatically produce surpluses during recessions and deficits during inflation.
(c) require no legislative action by Congress to be made effective.
(d) guarantee that the federal budget will be balanced over the course of the business cycle.
Answer:
The correct option is Debit Notes Receivable $100,000; credit Accounts Receivable $100,000
Explanation:
The journal entry to record when the notes receivable was signed to credit accounts receivable with the original value of the debt and debit same amount to notes receivable as is the case with the first option.
The interest due on the notes of $2,000 ($100,000*12%*2/12) would be recognized when the notes receivable become due for payment not immediately
Answer:
83.14 months
Explanation:
In this question, we use the NPER formula that is shown in the attachment
Given that,
Present value = $6,200
Future value = $0
Rate of interest = 14.9% ÷ 12 months = 1.24166%
PMT = $120
The formula is presented below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the time period is 83.14 months