Answer:
The Federal Reserve is in charge of the monetary policy in the United States. It expands or reduces the money supply (the total amount of money in the economy) by raising or lowering the interest rate.
There is a relationship, in the short run, between unemployment and money supply. The higher the money supply, the lower the unemployment rate, and viceversa: the lower the money supply, the higher the unemployment rate.
This relationship exists because when the money supply increases, the interest rate falls, if the interest rate falls, investing becomes cheaper, and as a result, firms invest more and hire more workers.
The opposite happens when the money supply is contracted: interest rates rise, investing becomes more expensive, and firms hire less people.
This is why the Fed has a great deal of power when it comes to employment in the economy.
Answer:
$44,300
Explanation:
The account payable had a beginning balance of $11,400
The company purchased $52,000 worth of supplies
The ending balance is $19,100
Therefore the amount in which the company paid to the creditors can be calculated as follows
= $11,400+$52,000-$19,100
= $6,400-$19,100
= $44,300
Answer:
Option D is the right answer.
Explanation:
The selling of debt or factoring of debt means selling of the claims to accounts receivables to a third party in return for instant cash. The factoring firm charges a certain factoring fee and only pay a certain percentage of cash to the selling company.
The amount of cash that will be received is,
Cash = 4400 * 0.96 = 4224
Factoring fee expense = 4400 * 0.04 = 176
Thus, the entry to record such a transaction for the firm which is selling its accounts receivable claims is,
Cash 4224 Dr
Factoring Fee expense 176 Dr
Accounts Receivable 4400 Cr
Answer:
If consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.
Explanation:
The effect of a market exchange on a third party who is outside or “external” to the exchange is called an externality or spill over.
Negative externality are negative spill over effects of a transaction, a situation where a third party, outside the transaction, suffers from a market transaction by others
.
Internalizing the externality means <u>shifting the burden, or costs, from a negative externality</u>, such as pollution or traffic congestion, from outside to inside (external to internal). This can be done through taxes, property rights, tolls, and government subsidies.
A negative externality exists is the cost of production exceeds private costs
Hence, such negative externality can be internalized through subsidy by the government
Answer:
(a) the financial ratio will be calculated with the projections of the cash flow. This will help the company to determinate their liquidity needs and their other atios as to budget the cash flow, the company had to solve for their dividend plan (to solve for financing activities cashflow) this will allow to calcualte for dividend per share for example. Also, the budget solve for purchase and sale of long-term equipment this makes the company to plan ahead how it is going to finance this. It will allow to solve the long term debt to equity, the long term asset to equity among other.
Resuming the budgeting of the financial statement will allow the managers to check for the performance of the company if operations runs according to plan.
(b) the budget allow to forecast the future while it is certain that actual values will differ if it isn't working in the papper there are less chances of a good output in real-life thus, It is used to discard bad project and only actual realize thoseth good odds. Also, is a resource of control once the operation are concluded to look for deviancy. Whitout budgeting accounting there is no way to plant ahead the use of cash to the business requirement.
Explanation:
