Answer:
$355,000
Explanation:
Joe's jalopies sold one of its warehouse for $300,000 and a tractor that has a fair market value of $25,000
The warehouse had a mortgage of $50,000 against it.
The adjusted basis was $130,000
Joe had to make a payment of $20,000 in sales commission to the realtor
Therefore, the amount realized by Joe's jalopies can be calculated as follows
=$300,000+$25,000+$50,000-$20,000
= $375,000-$20,000
= $355,000
Hence the amount that was realized by Joe's jalopies is $355,000
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Answer: D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same.
Explanation:
1. Since M2 = M1 + Saving deposit + Time deposits + Money Market deposit of individuals, then from the options given, the true statement about the monetary aggregate is that when you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Therefore, the fire option is D.
2. Your second question isn't well written but let's assume some figures in order to solve the question.
Let's say,
Currency = $863.2 billion
Demand deposit = $573.5 billion
Traveler's cheque = $3.8 billion
Savings deposit = $5237.8
Other checkable deposit = $319
Therefore, the total M1 amount in this economy will be:
M1 = Currency + Demand deposit + Travelers check + Other checkable deposits
= 863.2 + 573.5 + 3.8 + 319
= $1759.5 billion
Answer:
The correct answer is True.
Explanation:
Excess demand is a situation in which, for a given price, the amount that consumers want to buy is greater than the stock offered by sellers.
Otherwise, an excess of aggregate demand causes prices to rise and inflation is generated.
Well, given an excess of aggregate demand, with the intention of getting a price drop, the money supply will have to be reduced and interest rates increased, measures of a restrictive monetary policy.
The application of a restrictive monetary policy contributes to lower production and reduce inflation, although there is a possibility that it will generate a decrease in employment.
The reduction of public spending is an optimal solution to reduce possible inflationary pressures on the side of aggregate demand, said the Center for Economic Studies of the Private Sector (CEESP). Although the decline in public spending can also affect the pace of growth, it is the best way to moderate aggregate demand without additional effects and to stabilize financial markets.
Secure loans are less riskier than unsecured loan because Secure loans are backed by a collateral.
