Answer:
C) $40.000 Decrease
Explanation:
The accounting equation states that: Assets = Liabilities + Equity, so in this case the Assets must decrease in the same amount that change the other side of the equation, $40.000.
You invest $250/mo. over 12 months that equals $3,000 invested per year.
$250*12=$3,000/per year invested
$3,000 per year for 20 years equals $60,000 invested.
$3,000*20=$60,000 invested
8% of $60,000 is $4,800/per year.
0.08*$60,000=$4,800
$4,800 per year for 20 years equals $96,000 dollars earned on investments over 20 years.
A recessionary gap happens when an economy is falling into a recession, which is defined as a lower real level of income, as measured by real GDP, then the full-employment level. An economic recession can happen in a number of ways, including a higher nominal exchange rate, which reduces net exports and domestic income, and a large reduction in consumer expenditure or investment due to a decrease in take-home pay by workers.