Answer:
d. $5,400
Explanation:
The computation of the interest expense is shown below:
As
Interest Expense is
= $50,000 × 10%
= $5,000
And,
Amortization Expense is
= ($50,000 - $46,000) ÷ 10 years
= $400
So,
Total Bond Interest Expense is
= Interest expense + amortization expense
= $5,000 + $400
= $5,400
We simply added the interest expense and the amortization expense so that the total bond interest expense could come
If he chose to, Rich can enforce the contract against Adrienne's estate. This is because, sickness or death of a promisor is not an avenue or excuse for non-performance in contracts such as this, which can easily be delegated to another person for performance.
Answer:
See below.
Explanation:
For a, first we calculate the credit multiplier of the economy,
Credit multiplier = 1 / reserve ratio
Credit multiplier = 1 / 0.25 = 4
This means that any change in money supply will be 4 times as much in the economy, hence to induce a change of $120 billion, the Fed will decrease the money supply by 120/4 = $30 billion. This will increase the interest rates just enough to stabilize aggregate demand.
For b, we again start by calculating the credit multiplier.
Credit multiplier = 1/0.10 = 10
Since the Fed want to stimulate investment, it needs to use an expansionary monetary policy.
The Fed thus increases the money supply by 150/10 = $15 billion.
This will have the total effect of 150 billion on the whole thus achieving the Fed's objectives.
Hope that helps.
Answer:
Economies of scale
Explanation:
Economies of scale is described as the cost benefit or advantage which is experienced through the firm, when it rises the output level. Under economies of scale, the fixed costs did not vary or change with decreases or increases in the units of the production volume and the variable costs are dependent with rise in the output.
So, in this case, when the circumference is doubled of the oil pipeline, more than the volume doubles. This technique is selected through the large firms or business as it will result in the economies of scale.
