If country A allocates more resources to producing capital goods than does country B so less consumption goods will be getting by company B but will have more in the future. In addition to macroeconomics, economics is the study of allocating limited resources in order to satisfy a list of unlimited wants. Economics tries to examine situations in which individuals choose how to do things, when to do things and with whom to do.
Answer:
D) Monetary, fiscal
Explanation:
The Fed's dual mandate is to first promote a strong economy, but at the same time it must promote maximum employment, stable prices and moderate long term interest rates.
Monetary policy is carried out by the Fed through open market operations where it purchases or sells US securities, decreasing or increasing interest rates, and increasing or decreasing the money supply.
But if the interest rates are near 0, then the actions of the Fed are very limited regarding an expansionary monetary supply that would boost the economy and lower unemployment. There is basically no more room for lowering the interest rates.
So that means that the government must modify its fiscal policy to try to boost the economy. The government can either by increase spending, decrease taxes or a mixture of both. In this particular case, the Chairman of the Fed favors lowering decreasing taxes.
Answer:
Corporate bond pay = 10.169%
Explanation:
Given:
Federal tax = 28%
State tax = 9%
Local income tax = 4%
Municipal bond pay = 6% = 0.06
Corporate bond pay = ?
Computation of Corporate bond pay :
Total taxes rate = 28% + 9% + 4%
Total taxes rate = 41% = 0.41
Corporate bond pay = Municipal bond pay / (1-total tax rate)
Corporate bond pay = 0.06 / (1-0.41)
Corporate bond pay = 0.06 / (.59)
Corporate bond pay = 0.10169
Corporate bond pay = 10.169%
Answer:
$30,000
Explanation:
The computation of the royalty revenue reported is shown below:
= Patent-related sales for the year × given percentage
= $300,000 × 10%
= $30,000
The revenue is recognized when it is earned or realized so only $30,000 is to be reported as the royalty revenue
The remaining amount i.e $20,000 would be treated as an unearned royalty revenue
Explanation:
The two journal entries to record the depreciation is shown below:
On December 31
Depreciation expense - office equipment $2,440
To Accumulated depreciation - office equipment $2,440
(Being the depreciation expense is recorded)
On December 31
Depreciation expense - production equipment $6,230
To Accumulated depreciation - production equipment $6,230
(Being the depreciation expense is recorded)
