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Cloud [144]
3 years ago
13

In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to

restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing. decrease the rate of growth of the price level to keep real growth high.
Business
1 answer:
nekit [7.7K]3 years ago
3 0

Answer: increase the rate of growth of the money supply to restore spending growth.

Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.

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What is the principle of the law of supply?
seropon [69]

B. The higher the price, the larger the quantity produced.

6 0
3 years ago
Read 2 more answers
Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2:_________.
klemol [59]

Answer:

Ansara Company

a. Ansara Company  Variable Costing Income Statement

For the Year Ended December 31, 20Y2 (in millions)

Sales                                                                         $ 21,920

Variable cost of goods sold:

Beginning inventory                             $ 1,841

Variable cost of goods manufactured 13,810

Ending inventory                                    2,149

Total variable cost of goods sold                               17,800

Manufacturing margin                                               $4,120

Variable selling and administrative expenses              870

Contribution margin                                                 $3,250

Fixed costs:

Fixed manufacturing costs                      $ 4,820

Fixed selling and administrative expenses 1,100

Total fixed costs                                                        5,920

Income from operations                                         $2,670

b. Explanation of the difference between the amount of income from operations reported under absorption costing and variable costing concepts:

The difference occurs as a result of cost of inventory at the beginning and at the end.  Under variable costing concept, the fixed manufacturing costs does not form part of the product costs.  They are treated as period costs.  But under absorption costing, fixed manufacturing costs form part of the product costs.

Explanation:

a) Data:

Ansara Company Abbreviated Income Statement for the year ended December 31, 20Y2: (in millions):

Sales                                       $21,920

Cost of goods sold                $18,630

Gross profit                             $3,290

Selling, administrative, and

other expenses                        1,970

Income from operations        $1,320

b) Absorption costing concept is a costing technique that includes the full cost of manufacturing (i.e. cost of direct materials, direct labor, and all fixed production costs or overheads) in the product costs.  Under variable costing concept, the full cost of manufacturing is not included in the product costs.  Instead, all the variable costs (direct materials, direct labor, and variable overhead, whether factory or not)  are included, while fixed manufacturing overheads are treated as period costs and expensed.

5 0
3 years ago
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30
MatroZZZ [7]

Answer:

b) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50

Explanation:

Preparation of correct journal entry to record the payment on August 16

Based on the information given we were told that the company made a purchased of the amount of $9,750 of merchandise with terms of 1/10 and as well made returned of the amount of $1,500 worth of the merchandise while the full amount due was paid on August 16 which means that the journal entry to record the payment on August 16 will be :

Debit Accounts Payable $8,250

($9,500-$1,500)

Credit Merchandise Inventory $82.50

(1%×$8,250)

Credit Cash $8,167.50

[(100%-1%)×$8,250)]

3 0
3 years ago
Evie is very good with computers and using social media. She has created a new email system that automatically generates the ema
agasfer [191]

Explanation:

Evie is more likely to be involved in e-marketing career pathway

3 0
3 years ago
Read 2 more answers
Huron Investments issues $1 million in 13.250% bonds maturing August 11, 2028. The bond is callable August 11, 2023 at a call pr
Whitepunk [10]

Answer:

Huron Investments issues $1 million in 13.250% bonds maturing August 11, 2028. The bond is callable August 11, 2023 at a call premium of 2.500%. August 11, 2023 the prevailing yield is 5.250%. If Huron Investments calls the entire issue and replaces it with 5.250% bonds also maturing August 11, 2028 then each semi-annual coupon payment will decrease by <u>$125,000</u>

Explanation:

Change in semi-annual coupon = (13% - 6.75%) x 4m / 2 = $125,000

6 0
3 years ago
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