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3 years ago

Regarding the overall effect of negative interest rates on the economy, economists

Business

1 answer:

vova2212 [387]3 years ago

8 0

Answer:

The effect of negative interest rates on the economy is reflected in option D: negative interest rates simply cannot happen in reality. Answer D is the correct response.

Explanation:

Answer C is partially correct. In reality, experiments are running on economies as today: Greece economy. After a huge recession in previous years, the Government has released bonuses that, at the end of their effective period, will be charging people for actually buy them, and not paying them back. This leads us to answer D: negative interest rates can actually happen, but they cannot exist as an economic mechanism that develops the economy: customers will go for profit, not cost.

The effect of this model is negative on the economy since it will not provide enough resources for stimulation. Also, it will not slow it down since it is not expected that an instrument with negative interest rates will be accepted, in the form of bonuses, by customers; or loans, provided by banks.

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American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri

drek231 [11]

Answer:

a. Particulars Amount

Gross sales $925,000

Less: COGS $490,000

EBITDA $435,000

Less: Depreciation $120,000

EBIT $315,000

Less: Interest on notes payable $8,800 (220000*4%)

EBT $306,200

Less: Tax (35%*306200) $107,170

Net Income $199,030

b. Operating cash flow = Net income + Depreciation

Operating cash flow = $199,030 + $120,000

Operating cash flow = $319,030

6 0

3 years ago

The hair, nose, throat, and infected cuts of an average healthy person A. Carry no harmful bacteria. B. May carry Staphylococcus

EleoNora [17]

Answer:

B. May carry Staphylococcus.

Explanation:

7 0

3 years ago

If consideration is received before a contract is identified and the consideration is nonrefundable, revenue may be recognized i

Studentka2010 [4]

Answer: Any of these answer choice is correct.

Explanation:

You didn't put the options to the question. The options are:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered.

• Any of these answer choice is correct.

When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

• Goods have been delivered

Therefore, the correct option is any of the answer choice is correct.

3 0

3 years ago

A normal profit is:______

katen-ka-za [31]

Answer:

b. revenues minus accounting and opportunity costs.

Explanation:

A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit

The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.

4 0

3 years ago

Exercise 14-8 Presented below are three independent situations. (a) Oriole Co. sold $1,970,000 of 12%, 10-year bonds at 102 on J

bearhunter [10]

Answer:

$116,230

Explanation:

Calculation to determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017.

First step is to find the Cash interest on the Bond calculated as:

Cash interest on the Bond = 1,970,000*12%*6/12 = $118,200

Second step is to find the Premium on Bonds Payable calculated as :

Note that (102%-100%)=2%

Hence,

Premium on Bonds Payable = 1,970,000*0.02 = 39,400

The third step is to find the Semiannual bond Premium Amorixed for both July 1, 2017, and December 31 calculated as :

Semiannual bond Premium Amorixed = 39,400/(10*2)

Semiannual bond Premium Amorixed = 39,400/20

Semiannual bond Premium Amorixed = 1,970

The last step is to calculate Interest expenses for the both July 1, 2017, and July 1, 2017, and December 31 using this formula

Interest Expenses = Cash interest - Premium amortized

Let plug in the formula

Interest expenses = 118,200-1,970 = $116,230

Therefore the amount of interest expense to be reported on July 1, 2017, and December 31, 2017 will be $116,230

7 0

3 years ago