Answer:
The owner's equity amounts to $1,040,000
Explanation:
The formula to compute the owner's equity is as:
Owner's equity = Assets - Liabilities
Where
Assets = Land + Machinery + Cash
= $1,500,000 + $30,000 + $10,000
= $1,500,000 + $40,000
= $1,540,000
Liabilities = Loan
= $500,000
Putting the values above in the formula:
= $1,540,000 - $500,000
= $1,040,000
Answer:
c. 0.25
Explanation:
Cross-price elasticity = [(Q2-Q1/)((Q1-Q2)/2) * 100] / [(P2-P1/)((P1-P2)/2) * 100]
Cross-price elasticity = [(65-55)/((65+55)/2)*100] / [(2-1)/((1+2)/2)*100]
Cross-price elasticity = 16.6667/66.6667
Cross-price elasticity = 0.25000037
Cross-price elasticity = 0.25
Answer:
the options are missing, so I looked for them:
a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.
d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.
the answer is:
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
Explanation:
The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.
If demand also dropped.
If supply goes down and demand goes up, the price would rise.
If supply goes down and demand stays the same, the price would still rise.
