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stiv31 [10]
3 years ago
12

For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, th

e interest-rate effect, or the foreign-purchases effect.
a. As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect

b. When the price level decreases, restaurants become busier as more people purchase restaurant meals.

1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect
Business
1 answer:
aksik [14]3 years ago
3 0

Answer:

A)Interest-rate effect

B)Real-balances effect

Explanation:

✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance

As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.

✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is

When the price level decreases, restaurants become busier as more people purchase restaurant meals.

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On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The
frozen [14]

Answer:

the decrease in the value of the retained earning is $172,500

Explanation:

The computation of the decrease in the value of the retained earning is given below:

The dividend of the stock is

= (25,000 shares - 2,000 shares) × 10% × $75

= $172,500

Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500

8 0
3 years ago
Robert is a high school junior who likes studying diseases and medicine but doesn't want to have direct patient contact. He's al
jeka94

The phrase which <em>best describes</em> the scientific discipline that is concerned with the cognitive, information-processing is:

  • (A) Health Informatics

<h3>What is Health Informatics?</h3>

This refers to the practise of health data management which involves the use if info-processing to manage data and also for the administration and control.

With this in mind, we can see that the name which is given to the scientific discipline which would help Robert to study diseases and not have direct contact with them is Health Informatics.

Read more about Health Informatics here:
brainly.com/question/26129038

7 0
3 years ago
Una empresa con fecha 01/05 tiene unas existencias iniciales de 100 unidas de productos a un precio de 5€/ud. Realiza una compra
laila [671]

Answer:

FIFO 480 euros

LIFO 400 euros

PMP 460 euros

Explanation:

Unidades disponibles:

100 existencia inicial

300 compra

FIFO

Primero se venden las unidades de existencia inicial y luego las de la compra:

100 existencia inicial y 220 de la compra.

Inventario final: 80 unidades a 6 euros cada una = 480 euros

LIFO se vende primero la compra:

300 de compra y 20 de existencia inicial

Inventario final 80 unidades a 5 euros cada una = 400 euros

Costo Promedio Ponderado:

100 unidades a 5 + 300 a 6 = 500 + 1800 = 2300 euros

400 unidades costaron 2300 euros

en promedio: 2300 / 400 = 5.75

inventario final 80 unidades a 5.75 = 460 euros

5 0
3 years ago
Exercise 4-16 Sheffield Co. reports the following information for 2020: sales revenue $777,100, cost of goods sold $520,000, ope
Lesechka [4]

Answer:

Sheffield Co  

statement of stockholders' equity    

for the year ended 31th December 2020    

                 Common Stock RE            OCI   Total

Balance Jan 1 360,400      92,040 86,000 538,440

Net Income                                 167,900                 167,900

unrealized loss                                              -53,700     -53,700

Dividends                        -11,670             -11,670

Stock issued

Balance, Dec 31 360,400      248,270          608,670

Explanation:

We need to calcualte the net income:

sales revenue           777,  100

cost of goods sold  (520,000)

operating expenses <u> (89,200) </u>

Net Income                167,900

This will go into retained earnings

Dividends will also impact on retained earnings

Unrealized holding loss on available-for-sale debt securities for 2020 of $53,700.

This will modify the other comprehensive income.

The rest, will be post the beginning balance and include this variation.

3 0
3 years ago
Both a wife and her husband work in the airline industry. They are in their 40s and they have a high tax bracket and are concern
Serjik [45]

Answer: % money market; 30% long-term bonds; 5% commodities; 60% stocks, most with low dividends and high growth prospects (option D)

Explanation:

Since liquidity is not currently a major concern to the couple, investment in the money market can be low and also no investment is needed in the high dividend paying stocks.

Option A and C involve significant investment in the high dividend yielding stocks so they're ruled out. We are now left with Option B and D

Long term bonds usually pay less than the required rate that this couple is considering, therefore a significant amount must be invested in high yield return securities. This will make option D the right answer since it fulfils all the required objectives.

8 0
3 years ago
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