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baherus [9]
3 years ago
13

Lists two things that both increase the money supply?

Business
1 answer:
DENIUS [597]3 years ago
6 0

Answer:

Decrease is taxes

Increase in government spending

Explanation:

Government policies that increases the money supply in an economy is known as expansionary fiscal policy. They are:

1. Decrease is taxes - when government reduces the tax rate, the amount paid as taxes falls and as a result individuals, companies have higher disposable income whuch can be used for consumption or saving. This increases the money supply in the economy.

2. Increase in government spending - if the government increases it's spending on public goods for example, money supply would increase. If the government constructs a road, labour would be employed and paid wages. This payment increases the income of Labour and money supply increases.

Central bank policies that increases money supply are known as expansionary monetary policies. They include:

1. Open market purchase: The central bank purchase securities from the open market to increase money supply.

2. Reduction in reserve requirement ratio : if the reserve requirement ratio is reduced , commercial banks would have more money to give out as loans and this would increase money supply.

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Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $28
Tju [1.3M]

Answer:

Dr. Bad debt expense. $11,200

---------To Allowance for doubtful accounts $11,200

Explanation:

Given that:

Accounts receivable balance = $280,000

Total credit sales = $2,810,000

5% of accounts receivables will be bad debt = $280,00 × 5% = $14,000

Credit balance allowance for doubtful account = $2,800 and it must increase to $14,000 I.e $14,000 - $2,800 = $11,200

Adjusting journal entry

Dr Bad debt expense $11,200

-------- Cr Allowance for doubtful accounts $11,200

8 0
3 years ago
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes t
xeze [42]

Answer:

E) Trading company

Explanation:

In international trade, trading companies are basically wholesalers that work at an international level. They usually purchase products from different businesses and then resell them to local retail businesses or sometimes final consumers (less common). Trading companies generally enter a exclusive distribution agreement with the manufacturer per region or country that they operate in.

3 0
3 years ago
HELP PLSSSSSS ECONMICS<br> qjhewdkvdfjndbc vjdsncxkjd
larisa86 [58]

Answer:

C. Country A would focus on growing carrots to trade with country country B.

Explanation:

Country A can produce twice as many carrots as country B. this indicates that country A seems to have a comparative advantage over Country B in carrot production. Both countries have equal capacity in the production of apples.

Country A should focus on producing carrots for sales to country B. It can produce double what country B can, meaning its production costs are lower. Country A can sell carrots to country B at a lower price than it would cost country B to produce its carrots. Therefore, country A would be prudent to focus on producing carrots and trade them to country B.

8 0
3 years ago
Which of the following institutional investors most likely must spend a target percentage of the portfolio annually?
konstantin123 [22]

Answer: Endowments

Explanation:

The institutional investors that most likely must spend a target percentage of the portfolio annually is the endowments.

Endowment fund refers to the long term fund that is used for perpetual operations and usually set up by colleges or in hospitals

The fund then covers the expenses relating to provision of services for the students. A portion of the endowment is allowed to be use for every fiscal year.

7 0
2 years ago
When making college visits, you may be able to...
Pavlova-9 [17]
I think it'd be E. I hope that helps!

3 0
3 years ago
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