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2 years ago

According to classical macroeconomic theory, changes in the money supply affect:_______.

Business

1 answer:

Ivahew [28]2 years ago

6 0

Answer:

Option A. real GDP and the price level.

Explanation:

Option “A” is correct because the change in money supply (say increase) will decrease the interest rate and that will result in an increase in investment and more investment will generate more jobs and more money in consumers’ hands. Thus, they will stimulate the spending and aggregate demand will increase. Resulting in the rise in price and rise in real GDP. therefore, option A is right.

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explain how the substitution effect in the income effect interact with changes in price to change the quantity of demand

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Answer:

I have no idea what is the solution

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2 years ago

On March 1, 2021, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2021, for $99 million (plus accru

iris [78.8K]

Answer and Explanation:

1. The amount of the accrued interest rate is

= Principal × rate of interest × time period

= $100,000,000 × 12% × 2 months ÷ 12 months

= $2,000,000

The 2 months are considered from December 31 to March 31

2. And, the journal entry is

Cash Dr $101,000,000 ($99,000,000 + $2,000,000)

Discount on bond payable $1,000,000

To Bond payable $100,000,000

To Interest payable $2,000,000

(being the issuance of the bond is recorded)

Here it debited the cash as it increased the assets and credited the bond payable and interest payable as it also increased the liabilities

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2 years ago

Which best describes why a company issues stocks? to increase the company’s value to ensure profits to increase dividends to rai

Orlov [11]

Answer:

to raise capita

Explanation:

A stock or shares represents the smallest unit of ownership in a company. Ownership of a company is acquired by buying the company's stock in the stock market, or having contributed capital during its formation. The shareholder, therefore, gives out money to a company in exchange for shares.

A company issues shares to raise capital. As investors purchase shares, the company gets money to expand its business. The investors become shareholders and are entitled to share in the profits of the business.

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2 years ago

Read 2 more answers

Under an acceptable method of costing by-products, inventory costs of the by- product are based on the portion of the joint prod

saw5 [17]

Answer:

b. plus any subsequent processing cost.

Explanation:

In the case of the acceptable costing method for by-products the inventory cost that are depend upon the joint cost should be distribution to the by-product plus if there is any processing cost

that means

Inventory cost of the bu-product = joint cost + processing cost

Therefore the same should be considered

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2 years ago

Asher buys a linen suit from Miriam and gives it to his father, Moises. Moises takes the suit to Vanessa, who runs a local dry c

andrezito [222]

This doesn’t even make any sense

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