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4 years ago

15

Suppose the government permanently reduces spending in an effort to reduce the budget deficit. in the new long-run equilibrium,

output will __________ and the price level will __________.

1 answer:

Scrat [10]4 years ago

6 0

I have to answer questions so this is it i guess

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MCQ: An advantage of 'forced distribution method' is

bogdanovich [222]

Answer:

A. avoids central tendency and biases

Explanation:

5 0

3 years ago

The balance of payments (bop) measures all international transactions between two countries. the chart below shows six different

svp [43]

Answer:

Answer: US had a trade deficit and China had a surplus in its BOP

Explanation:

Inflow to US economy / Outflow of Chinese economy

1. Chinese tourist spent $ 1000

2. Chinese purchased a business $600

3. Puchased goods $300

Total Inflow $1900

US Outflow / China' inflow

US purchases goods $800

Sent aid $100

Investment in stocks $200

US tourist spent $1000

Total Outflow $2100

US had a trade deficit and China had a surplus in its BOP

Chinese government purchase of US bonds' value is not given, the purchase will be treated as credit to US BOP and the income received will be credit to China's BOP.

8 0

4 years ago

Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax ba

Norma-Jean [14]

Answer:

Which party to the exchange must pay boot to make the exchange work?

Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.

How much boot must be paid?

$90,000 - $77,500 = $12,500

Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?

Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500

Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.

8 0

4 years ago

Both ________ and ________ were financial innovations that occurred because of interest rate volatility.

RoseWind [281]

Both adjustable-rate mortgages and financial derivatives were financial innovations that occurred because of interest rate volatility.

Interest is the amount paid by the borrower or deposit-taking financial institution to the lender or depositor in excess of the repayment of the principal at a specified rate. It is different from a fee that a borrower can pay to a lender or a third party.

Interest is the price you pay to borrow money or the cost you charge to borrow money. Interest is usually given as an annual percentage of the loan amount. This percentage is called the interest rate on the loan. For example, if you deposit money in a savings account, your bank will pay you interest.

Learn more bout interest here:brainly.com/question/2151013

#SPJ4

8 0

2 years ago

E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. P

Kisachek [45]

Answer:

A = $97,200

B = $32,400

C = $129,600

D = $64,800

E = $36,000

Explanation:

Provided for 10% share in business E contributes = $36,000

That means total capital = $36,000/10% = $360,000

Therefore remaining partner's share = 100 - 10% = 90%

Total Value of share of all partners except E = $360,000 - $36,000 = $324,000

Which shall be in the ratio

A = 30%, B = 10%, C = 40%, D = 20%

Therefore, capital balances shall be as follows:

A = $324,000 $\times$ 30% = $97,200

B = $324,000 $\times$ 10% = $32,400

C = $324,000 $\times$ 40% = $129,600

D = $324,000 $\times$ 20% = $64,800

E = $36,000

Total Share = $360,000

6 0

3 years ago