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3 years ago

The interest rate does not affect the intertemporal budget constraint. a. True b. False

Business

1 answer:

Kruka [31]3 years ago

6 0

Answer:

False

Explanation:

The correct answer is false because the interest rate does affect the intertemporal budget constraint.

A higher interest rate, will cause the budget line to pivot upwards while a lower rate will make the budget line to pivot downward.

The intertemporal budget constraint can used to show a decision on how to save. It refers to the constraint which an individual encounters when making choices for the present and for the future. It reflects a consumer's decision on the amount to consume in the present and the amount to save in the future.

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Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discr

Novay_Z [31]

Answer: a) -A tax cut

-Additional spending on national park facilities

b) Expansionary fiscal policy

Explanation:

Fiscal Policy refers to how the government of a country is using it's spending and taxes to influence Economic conditions on a Macro level.

The keywords for this question are TAXES and SPENDING.

The means that a Discretionary FISCAL policy includes Taxes and Spending.

Now the way to close the Recessionary gap that is opening is to put more money into the Economy. The Government can do this by REDUCING TAXES which will means people have more money to spend and ADDITIONAL SPENDING on NATIONAL PARK FACILITIES as this means that the government is pumping more money into the Economy.

The discretionary fiscal policy needed to bring the economy closer to potential output is an example of an EXPANSIONARY FISCAL POLICY.

This is where the Government aims to put more money into the economy so that growth can be acheived and they do this by lowering taxes and increasing spending either singularly or simultaneously.

3 0

3 years ago

On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The

Vilka [71]

Answer:

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

Explanation:

On October 1, when Courtland Company sold merchandise, the following entries were made:

1. Debit Cost of goods sold $4,000

Credit Merchandise $4,000

2. Debit Receivable Accounts $5,800

Credit Sales $5,800

Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Carter pays and takes the appropriate discount:

2% x $5,800 = $116

Cash Courtland Company receives: $5,800-$116 = $5,684

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

3 0

3 years ago

Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000. The effect of this transaction on

Sedbober [7]

Answer: $10,000 increase in Treasury Stock

Explanation:

Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.

This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.

3 0

2 years ago

For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an a

Naddik [55]

Answer:

$80,160.

Explanation:

An account receivable is lawfully enforceable cases for installment, held by a business for the products provided and benefits that clients/customers have requested yet not paid for.

According to Rahal's autos noncollectable accounts and the amount they received in the following year. Rahal's collectible accounts on December 31, 2021, is

86,500 + 404,000 - 408,000 - 2,340

3 0

3 years ago

When you get hired for a well-paying job, you will most likely view older used cars as complementary goods. normal goods. substi

valentinak56 [21]

When you get hired for a well-paying job, you will most likely view older used cars as<u> inferior goods.</u>

<h3><u /></h3><h3><u>What are inferior goods?</u></h3>

As consumer income rises, customer demand declines for a class of inferior goods. Low-cost alternatives to "normal products," or necessities like food and household supplies, are frequently found in inferior goods. For instance, when someone's wage is cut, they might buy cheaper, poorer things than they would otherwise. When their earnings increases again, they're more likely to buy regular things rather than cheap ones.

The word "inferior" refers to the product's price and perceived worth rather than its quality. The quality may occasionally be inferior to an equivalent standard good, but it may also occasionally be the same. In reality, there are occasions when the only distinctions between regular goods and equal substandard goods are the packaging and price of the goods.

Learn more about inferior goods with the help of the given link:

brainly.com/question/13377225?referrer=searchResults

#SPJ4

5 0

1 year ago