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3 years ago

Keynesians argue that the interest elasticity of the demand for money is

Business

1 answer:

lorasvet [3.4K]3 years ago

5 0

Answer:

The correct answer is letter "C": relatively high, while monetarists argue it is low.

Explanation:

Keynesian Economics is a school of thought in which the government plays an important role in mitigating economic recessions. It is named after British economist John Maynard Keynes (1883-1946) who argued that governments need to push against economic tides in order to loosen the impact of the boom and bust cycles that are inevitable in a free market economy.

Associated with American economist Milton Friedman (11912-2006) Monetarism states that the government must keep the money supply fairly steady, increasing it marginally each year primarily to allow the economy to grow naturally. Monetarists consider the fiscal policy as less effective than monetary policy due to the low-interest elasticity of the demand for money, opposite to the idea of Keynesians.

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On December 1, 2021, the company received $9,000 in cash from another company that is renting office space in Falwell’s building

MrMuchimi

Answer:

From all indications,the two rents received have been posted wrongly, I want to believe that you are required to post the adjusting entries,hence my answer below:

The first $9000 was posted to deferred revenue,whereas only two months should have been

First rent:

DR Deferred revenue $3000

CR Revenue $3000

Second Rent

DR Revenue $6000

CR Deferred revenue $6000

Explanation:

The first $9000 was posted to deferred revenue,whereas only two months should have been deferred and December rent recognized as rent.

As far as the second rent is concerned only one month has been earned,as a result the revenue should be credited with just $3000 for December.

This then mean that revenue from the second property has been overstated in December by $6000,this necessitated by adjustment above.

8 0

3 years ago

Who would be more likely to join the cross-country team (individual sport) instead of the volleyball team (team sport) and want

fgiga [73]

Answer: Introvert with a high need for power

Explanation: An Introverted individual is one who is considered more thoughtful than social, with a personality more inwardly than outwardly directed and as one who often prefers to have time in non-social situations. Given this, an introvert with a high need for power, however, would be more likely to join the cross-country team, which is an individual sport, rather than the volleyball team (team sport) and want to be captain of the team rather than just be a member.

4 0

3 years ago

Read 2 more answers

The potential loss for a writer of a naked call option on a stock is Multiple Choice increasing when the stock price is decreasi

jok3333 [9.3K]

Answer:

The correct answer will be Option A (unlimited).

Explanation:

The potential loss which always relies on something like a potential occurrence happening or otherwise not happening. One such loss to such a writer's exposed put option on either a stock seems to be indefinite or unlimited.
Unless the loss becomes probable as well as the sum could be calculated, the damage including responsibility must be reported with either the journal entry.

Other available scenarios aren't connected to the situation in question. So alternative A, therefore, the perfect solution.

3 0

3 years ago

An asset falling under the MACRS five-year class was purchased three years ago for $200,000 (its original depreciation basis). C

Nitella [24]

Answer:

(a) The cash flows is $59,040.

(b) The cash flows is $71,040.

Explanation:

From the Modified Accelerated Cost Recovery System (MACRS) Tables, the depreciation rates for the first 3 years for an asset falling under the MACRS five-year class are 20%, 32% and 19.2%. Therefore, we have:

Accumulated depreciation rate = 20% + 32% + 19.2% = 71.20%

Accumulated depreciation = Cost of the asset * Accumulated depreciation rate = $200,000 * 71.20% = $142,400

Net book value of the asset = Cost of the asset - Accumulated depreciation = $200,000 - $142,400 = $57,600

We can now proceed as follows:

(a) Calculate the cash flows if the asset is sold now at $60,000

Capital gains = Sales proceeds - Net book value = $60,000 - $57,600 = $2,400

Capital gains tax = Capital gains * Tax rate = $2,400 * 40% = $960

Net sales proceeds = Sales proceeds - Capital gains tax = $60,000 - $960 = $59,040

Therefore, the cash flows is $59,040 net sales proceeds.

(b) Calculate the cash flows if the asset is sold now at $80,000

Capital gains = Sales proceeds - Net book value = $80,000 - $57,600 = $22,400

Capital gains tax = Capital gains * Tax rate = $22,400 * 40% = $8,960

Net sales proceeds = Sales proceeds - Capital gains tax = $80,000 - $8,960 = $71,040

Therefore, the cash flows is $71,040 net sales proceeds.

3 0

3 years ago

As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo

icang [17]

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

8 0

3 years ago