Contributing to the negative balance of payments.
Answer:
The correct answer is letter "C": relatively high, while monetarists argue it is low.
Explanation:
Keynesian Economics is a school of thought in which the government plays an important role in mitigating economic recessions. It is named after British economist John Maynard Keynes (1883-1946) who argued that governments need to push against economic tides in order to loosen the impact of the boom and bust cycles that are inevitable in a free market economy.
Associated with American economist Milton Friedman (11912-2006) Monetarism states that the government must keep the money supply fairly steady, increasing it marginally each year primarily to allow the economy to grow naturally. Monetarists consider the fiscal policy as less effective than monetary policy due to the low-interest elasticity of the demand for money, opposite to the idea of Keynesians.
Here is the link to the question central c and b
Answer:
a) UNDER FIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
- COGS = 90 X $39 = $3,510
- remaining inventory = 30 x $39 = $1,170
November 15 Purchase 140 units at $40
November 20 Sale 110 units
- COGS = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370
- remaining inventory = 60 x $40 = $2,400
November 24 Sale 45 units
- COGS = 45 x $40 = $1,800
- remaining inventory = 15 x $40 = $600
November 30 Purchase 160 units at $43
- remaining inventory = $600 + (160 x $43) = $7,480
b. UNDER LIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
- COGS = 90 X $39 = $3,510
- remaining inventory = 30 x $39 = $1,170
November 15 Purchase 140 units at $40
November 20 Sale 110 units
- COGS = 110 x $40 = $4,400
- remaining inventory = (30 x $40) + (30 x $39) = $2,370
November 24 Sale 45 units
- COGS = (30 x $40) + (15 x $39) = $1,785
- remaining inventory = 15 x $39 = $585
November 30 Purchase 160 units at $43
- remaining inventory = $585 + (160 x $43) = $7,465
Under LIFO, the ending inventory is lower than under FIFO.
