Buying stocks on credit. because you're borrowing capital from a broker to buy stocks
Economics in many cases is an exact science, but usually it is a practical one that has applications. Thus there are some practical goals that need to be answered with the use of economics and an easy to summarize form of them are the five fundamental questions of economics. 3 of the choices above are such fundamental questions; determining the way of production, the receiver of the production as well as the ways in which the economic system can change are of fundamental importance to the science of economics. The other 2 questions are: What products will be produced ? and How can we foster progress?
Choice d is a pretty important question too (that falls somewhat under a) but the fact that it mentions the government specifically makes it less general than the other propositions so it is not a fundamental question.
Answer:
The correct answer is: decrease.
Explanation:
If Aggregate Supply (<em>AS</em>) is higher than Aggregate Demand (<em>AD</em>), it implies somehow consumers are keeping their income with them. Economic activity will <em>contract </em>as a result but to promote consumption, for instance, banks lower their interest rates on loans with the confidence that consumers will have enough money to cover their debts.
Answer: A statement of retained earnings shows how net income increased and dividends decreased the retained earnings balance during the period
Explanation:
A Statement of Retained Earnings which is also known as a Statement of Equity is a financial statement that reconciles the beginning and ending Retained Earnings balance
It uses information such as net income and dividends paid out.
When net income comes in, Retained Earnings increases. When Dividends are paid out, it reduces the balance because it represents cash outflow.
He has 2 million gold holding
He has 5 million of paper money
the fraction = gold holding/paper money
= 2 million / 5 million
= 2/5
so the answer is C. 2/5
