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2 years ago

According to the model developed in Chapter 3, when government spending increases and taxes increase by an equal amount:

Business

1 answer:

Mariana [72]2 years ago

7 0

Answer:

Correct answer is (B) consumption and investment both decrease.

Explanation:

when government spending increases and taxes increase by an equal amount there will be decrease in both consumption and investment.

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Patrick Rach International issued 5% bonds convertible into shares of the company's common stock. Rach applies U.S. GAAP. Upon i

Ludmilka [50]

Answer:

The correct answer is letter "B": The proceeds of the bond issue entirely as debt.

Explanation:

Under the U.S. General Accepted Accounting Principles (GAAP) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the effective interest method or the straight-line method.

6 0

3 years ago

Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loana

Svet_ta [14]

Answer: (a).

Annexure: Since a part of the information was found missing in the question, a similar question has been provided as an attachment for reference.

If the interest rate falls with other things remaining constant, a firm would like to raise more money via debt instruments.

This will lead to an increase in the quantity of loanable funds demanded.

This would further lead to increase in the level of invested funds by the public as it would get cheaper for the corporates to avail loans.

7 0

3 years ago

Rising peanut prices have forced peanut butter makers to raise the price of a jar of peanut butter from $2 to $3 per jar, causin

Vanyuwa [196]

Answer:

37.5%

Explanation:

The percentage change in the price of a jar of peanut butter, using the midpoint method, is:

$P_B = \frac{3-2}{\frac{3+2}{2}}*100=40\%$

The percentage change in sales of jelly is 15%.

The cross elasticity of demand between peanut butter and jelly is:

$E = \frac{15\%}{40\%}*100\%\\E=37.5\%$

The cross elasticity of demand is 37.5%

7 0

3 years ago

Estimating the chance of loss associated with premature death is an objective probability.

vredina [299]

Answer:

Explanation:

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8 0

2 years ago

Overapplied manufacturing overhead would result if:

Ksivusya [100]

Manufacturing overhead describes the difference between manufacturing overhead cost applied to work in process and manufacturing overhead cost actually incurred during a period.
Over-applied manufacturing overhead would result if the manufacturing overhead cost applied to work in process is more than the manufacturing overhead cost actually incurred during a period. So, in over-applied overhead the applied overhead is bigger than the actual overhead.

4 0

3 years ago