Answer:
Imported, an advantage, more.
Explanation:
- This is done to discourage the use of foreign items and use of domestically made products. This helps the domestic companies to get their advantage in profit and sales. Thereby making the imported goods more expensive and discourages their use.
Answer:
Increase in assets of $8,000 and an increase in liabilities $8,000
Explanation:
The effect of the transaction is shown below with the help of the accounting equation
Liabilities + Owner equity = Assets
$8,000 + 0 = $8,000
($10,000 - $2,000)
Therefore from the above calculation, we can see that there is an increase in assets also there will be an increase in liabilities but no effect on stockholder equity
Answer:
Explanation:
December 31, 2017
DR Cash $30,868
CR Lease Receivables $20,569
CR Interest Revenue $10,299
(To record less payment receipt)
Workings
Interest Revenue
= ( Present Value - Rental Payment for year) * Interest Rate
= ($178,002 - $30,868 )*7%
= $10,299.38
= $10,299
Lease Receivables
= 30,868 - 10,299
= $20,569
Answer:
D. Changes in federal expenditures
Given:
Marginal propensity to consume (MPC) = 0.8
Equilibrium real output = $500 billion
Full-employment output = $540 billion
Find:
Change in government spending ΔG = ?
Computation:
Change in output ΔY = Full-employment output - Equilibrium real output
Change in output ΔY = $540 billion - $500 billion
Change in output ΔY = $40 billion
Change in output ΔY = [1 / (1 - MPC)] × ΔG
$40 billion = [1 / (1 - 0.8)] × ΔG
$40 billion = [1 / (0.2)] × ΔG
$40 billion = [5] × ΔG
ΔG = $40 billion / 5
ΔG = $8 billion
Change in government spending ΔG = $8 billion.
