the correct answer is letter C:)
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<span>They will Set prices to match Company A
According </span><span>to the theory of price leadership, there will always be a company that become a market leader in determining the market's standard for acceptable price upon a certain product.
Usually, the most dominant company took this position because they had the capability to manufacture large quantity product to obtain cheaper price</span>
Answer:
common stock = 29,000 credit
Explanation:
We will calculate the debits and credit and solve for common stocks:
Assets and expenses (debits)
cash 5,000
accounts receivable 12,000
furniture 10,000
expenses <u> 17, 500 </u>
Total 44,500
Now the credits which is liabilities, equity and revenues:
account payable 5,000
note payable 5,500
revenues 5,000
total 15,500
To balance common stock must made up the difference between debit and credit:
44,500- 15,500 = 29,000
Notes: from the expand accounting equation we can conclude which has debit and credit balance:
assets + expenses = laiblities + equity + revenues
this side is debit while this is credit
Answer:
The answer is C.
Explanation:
The Federal Reserve acts as the Central Bank. And the tool it uses to control the economy is monetary policy and its tools are:
1. Reserve requirements
2. Open market operation
3. Discount rate(interest rate)
The Federal reserve can control the money supply in the eco economy through any of these tools.
For example, if Federal reserve wants to increase the money supply, they can do the following:
a) reducing the interest rate it lends commercial banks money, commercial banks too reduces the interest it charges businesses or households. With lower interest, households and businesses are encouraged to borrow, thereby increasing the money supply and vice-versa.
b) lowering the reserve requirements. Reserve requirement is the minimum balance commercial banks must have with the federal reserves. This is guided by law. Lowering the reserve requirements enable commercial banks to have more money to lend to their customers and vice-versa.
In all, Federal reserve use any of these tools to control money supply that is consistent with their target nominal interest rate.