Answer:
a M1 would not change.
Explanation:
the checkable deposits are part of M1 as well as the currency and coins. Therefore, a component of M1 decrease (currency) while another of M1 (checkable deposits) increase.
As the banking system works with a 100-percent required reserve there is no multiplier effect from the deposit therefore M1 do not change.
Answer:
Total cost= $204,750
Explanation:
Giving the following information:
Fixed costs: supervisor’s salary $3,000; factory rent $6,500
Mixed costs: utilities $3,500 + $10.25 per unit
Variable costs per unit:
manufacturing labor wages $30.00
supplies used in production $13.50
packaging cost $7.25
warranty cost $4
Required: Compute total costs to be incurred for a week with 2,950 units of activity.
Fixed costs= 3,000 + 6,500 + 3,500= $13,000
Variable costs= (10.25 + 30 + 13.5 + 7.25 + 4)*2,950= $191,750
Total cost= $204,750
Answer:
$3150
Explanation:
Given:
Cost of the asset purchased = $87500 (on 1st October. 2022)
Salvage value at the end of its useful life = $24500
Useful life estimated = 5 years
Question asked:
What is the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation?
Solution:
<u>As we know:</u>
Depreciation expenses per year = $12600
But we have to find depreciation expenses for 2022 for:-
From 1st October, 2022 to 31st December, 2022 = 3 months.
<em><u>Straight-Line Depreciation Expense for Partial Year = </u></em>
<em><u /></em>
Depreciation Expense for 3 months = 
Therefore, the depreciation expense for 2022 if Ivanhoe Company uses the straight-line method of depreciation is $3150.
Answer:
An increase of $2,500
Explanation:
During cash-basis accounting method, all income and expenses that results to ACTUAL CASH INFLOW and OUTFLOW will be recorded. Thus, those income and expenses that applies for the period will not be recorded yet as long as there is no actual cash outflow. And all income made on account for the period will not be recognized unless there is an actual collection. Based on the stated facts, Sussman Co.,recorded $1,900 sales instead of the actual sales of $5,600 using accrual basis and has never been recorded the expenses incurred in the accrued salaries.
So, $5,600 less $1,900 cash collection which already have recorded on cash basis method, there will be an additional sales to be recorded at $3,700 less the salaries expense already incurred but not yet paid of $1,200. There will be an additional income of $2,500 after restatement.
<u>Answer:
</u>
The interest rate effect explains why the aggregate demand curve is downward sloping.
<u>Explanation:
</u>
- The interest rate effect proposed by Keynes suggests the reasons for why is the aggregate demand curve downward sloping.
- It states that, when the interest rates are low, people choose to invest owing to the decreased costs of investment. This investment stimulates a drop in the levels of price.
- The dropped prices thus increase the aggregate demand for the commodities of which the price has dropped.
