Answer:
1. Journal:
October 1:
Debit Cash $30,000
Debit Building $200,000
Credit Common Stock $230,000
To record the receipt of cash and building for common stock.
2. T-accounts:
Cash Account
Date Description Debit Credit Balance
Oct. 1 Common Stock $30,000 $30,000
Building Account
Oct. 1 Common Stock $200,000 $200,000
Common Stock
Oct. 1 Cash $30,000 $30,000
Oct. 1 Building $200,000 $200,000
Explanation:
Journal entries show the accounts to be debited and credited respectively. They are the initial records of a business transaction. They can be used to post any transaction, make adjustments to the accounts, and close the accounts at the end of the accounting period.
Answer: Marginal propensity to consume = $0.60
Spending multiplier = $2.5
Explanation: The MPC can be calculated using following equation :-
![MPC=\frac{change\:in\:consumption}{change\:in\:spending}](https://tex.z-dn.net/?f=MPC%3D%5Cfrac%7Bchange%5C%3Ain%5C%3Aconsumption%7D%7Bchange%5C%3Ain%5C%3Aspending%7D)
![MPC=\frac{\$0.60}{\$1}](https://tex.z-dn.net/?f=MPC%3D%5Cfrac%7B%5C%240.60%7D%7B%5C%241%7D)
= 0.60
Similarly, we can calculate spending multiplier as :-
![Spending\:multiplier\:=\:\frac{1}{1-MPC}](https://tex.z-dn.net/?f=Spending%5C%3Amultiplier%5C%3A%3D%5C%3A%5Cfrac%7B1%7D%7B1-MPC%7D)
![Spending\:multiplier\:=\:\frac{1}{1-0.60}](https://tex.z-dn.net/?f=Spending%5C%3Amultiplier%5C%3A%3D%5C%3A%5Cfrac%7B1%7D%7B1-0.60%7D)
= $2.5
It cost you $85 to gas up your car this month. But last month it cost you $50. This is inflation
Answer by YourHope:
Hi! :)
Question: Explain if there is excess supply or demand of goods at the equilibrium price and why?
Answer: Equilibrium is at the point where supply and demand meet and the prices are set. Since the price is set as a equilibrium, there won't be an excess to either, but if you set the price above equilibrium, you move away from equilibrium and have disequilibrium create excess supply or excess demand!
Have a BEAUTIFUL day~
<span>A petition that, if signed by a majority of the members of the House of Representatives, will pry a bill from committee and bring it to the floor for consideration.
A discharge petition!</span>