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3 years ago

According to liquidity preference theory investment spending would rise if the price level

Business

1 answer:

ANTONII [103]3 years ago

4 0

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

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Rauch Inc. leases a piece of equipment to Donahue Corp. on Jan 1 2017. The lease agreement called for annual rental payments of

Eduardwww [97]

Answer:

Explanation:

1. Suppose the instead of $8,250, Rauch expects the residual value at the end of the lease to be $5,000, but Donahue agrees to guarantee a residual value of $8,250. All other facts being eqaul, how would Rauch change the amount of the annual rental payments, if at all?

A lower residual value means the car is expected to hold its value less (depreciate more) over the lease term.

Therefore, since most of the lease payment covers the cost of depreciation., more depreciation (or lower residual value) will most likely result into higher monthly payments over the lease term.

2. Explain how a fully guaranteed residual value by Donahue would change the accounting for Rauch, the lessor.

The financial accounting term guaranteed residual value has to do with an additional payment made by a lessee in property, cash, or both at the termination of the lease.

Therefore since Guaranteed residual values are financial commitments made by the lessee, they are factored into the calculation of the minimum lease payment.

3. Explain how a bargain renewal option for one extra year at the end of the lease term would change the accounting of the lease for Rauch, the lessor.

A bargain renewal option is a clause in a lease contract that gives the lessee the option of extension of the term of the lease at a substantially lower trate than the going market rate.

The presence of this clause in a lease contract will most likely imply that the lease will change to a finance lease rather than an operating lease

4 0

3 years ago

Why is 10 cents earned far more valuable than a dollar found. Critical thinking.

mixer [17]

10 cents is more valuable than finding a dollar i think because of the connection with hardworking , rather earn something than find because are luck isn’t always trusted

4 0

2 years ago

Jobs of financial

sukhopar [10]

Answer:

The answer is option B) without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.

Explanation:

The financial plan of an organization also known as financials is a record used to determine how a business will afford to achieve its strategic goals and objectives.

The Financial Plan collates each of the activities, resources, equipment and materials that are needed to achieve these objectives and specify time frames involved.

A financial plan contains a sales forecast, expense budget, cash flow statement, income projections, asset and liabilities, depreciation table, break even analysis and pre-operating costs. It shows whether the firm is making profit or running at a loss.

It is usually prepared in a spreadsheet.

This plan is what the bank and investors will need to evaluate your business.

Without a carefully calculated financial plan, a firm has little chance for survival, regardless of its product or marketing effectiveness.

8 0

3 years ago

Can someone help me with this business worksheet

Sholpan [36]

Answer:

uhm heyyyy I can help

8 0

3 years ago

If the fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the inflatio

prohojiy [21]

TRUE, If the fed undertakes expansionary monetary policy, it can return the economy to its original unemployment rate but the inflation rate will be higher.

Monetary policy is the macroeconomic policy set by the central bank. It involves the management of the money supply and interest rates, and is the demand-side economic policy adopted by national governments to achieve macroeconomic goals such as inflation, consumption, growth and liquidity.

Monetary policy refers to the measures taken by a country's central bank to control the money supply in order to stabilize the economy. For example, policymakers manipulate the money supply to increase employment, GDP, and price stability using instruments such as interest rates, reserves, and bonds.

Learn more about monetary policy here:brainly.com/question/13926715

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3 0

2 years ago