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2 years ago

Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to

Business

1 answer:

BigorU [14]2 years ago

8 0

Question Completion with Options:

A. greater investment.

B. All of the above are correct.

C. higher public saving.

D. a higher interest rate.

Answer:

Other things the same, the effects of an increase in transfer payments on the government's budget deficit will lead to

D. a higher interest rate.

Explanation:

When the government is operating a budget deficit, it means that its spendings are more than its tax revenues. It then resorts to issuing treasury bills and bonds to finance the deficit. This naturally reduces the price of bonds and raises interest rates. With rising interest rates, firms and individuals reduce their spending. The cost of borrowing becomes more expensive than before.

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Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of directors declared a stock di

andrey2020 [161]

Answer:

e. Debit Retained earning $49,280 Credit Common stock dividend distributable $35,200

Credit Paid in capital in excess of par value(Common stock) $14,080

Explanation:

The journal entry is as follows:

Retained earnings (3,520 shares × $14)

Dr $49,280

_______ Common stock dividend distributable (3,520 shares × $10)

Cr $35,200

_______ Paid in capital in excess of par value ($49,280 - $35,200)

Cr $14,080

3 0

2 years ago

You currently have $5,400. First United Bank will pay you an annual interest rate of 8.9, while Second National Bank will pay yo

IRISSAK [1]

Answer:

Second National Bank

Present value (PV) = $5,400

Future value (FV) = $13,900

Interest rate (r) = 10% = 0.10

FV = PV(1 + r)n

$13,900 = $5,400(1 + 0.10)n

$13,900 = (1.10)n

$5,400

2.574074074 = (1.10)n

Log 2.574074074 = n log 1.10

Log 2.574074074 = n

Log 1.10

n = 9.9 years

None of the answers is correct

Explanation:

In this case, we will apply the formula of future value of a lump sum. The present value, interest rate and future value were provided with the exception of number of years. Thus, the number of years becomes the subject of the formula. The future value equals present value, multiplied by 1 plus interest rate, raised to power number of years.

8 0

3 years ago

Click on the link below(I will add it below) to access a video on Entrepreneur Mark Zuckerberg. As you watch the video, fill in

Virty [35]

Answer:

This is what shows

Explanation: