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faltersainse [42]
2 years ago
12

What is the danger of having a lot of debt? (brainlyest)

Business
2 answers:
podryga [215]2 years ago
7 0
The four main consequences are: Lower national savings and income. Higher interest payments, leading to large tax hikes and spending cuts. Decreased ability to respond to problems.
ArbitrLikvidat [17]2 years ago
4 0

Answer:

probably not paying it off in time or something

Explanation:

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Abby consumes only apples. In year1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2,
Hitman42 [59]

Answer:

Part A)  

Consumer price index is an amount of the average variation over time in the amounts paid by customers for a market basket of customer goods and services.

CPI= (Updated Cost/Base Period Cost) x 100

For multiple products, we have to ruminate the weights or proportion of expenditure of an item

CPI2= (P2Red xQ1Red) + (P2grn x Q1grn) / (P1Red xQ1Red) + (P1grn x Q1grn)

CPI2= (2 x 10) + (1x0)/ (1x10) + (2x0)

CPI2= 2

Based on the CPI in year 2, prices have doubled.

Part B)

Nominal expenditure is the total worth of outcome produced or expended in each year.

In year 1 and year 2, Abby buys

Year 1= $1 x 10= $10

Year 2= $1 x 10= $10

So, nominal expenditure remains constant at $10.

Part C)

Real expenditure is the quantity consumed or the basket in the current year calculated at the base year price.

Base year prices: Red $1& Green $2

Real expenditure in year 1  = (P1rQ1r) + (P1gQ1g)

                                               =$1x10 + X2x0

                                               = $10

Real expenditure in year 2  = (P1rQ2r) + (P1gQ2g)

                                       = (1x 0) + (2 x 10)

                                       = $20

So, real expenditure has increased from $10 to $20

Part D).

Implicit value deflator in year 1, it is the base year so it will be continuously 1 as the actual and nominal amounts are equal.

Implicit price deflator in year  = nominal expenditure/real expenditure

Implicit price deflator in year 1 = 10/10

                                                = 1

Implicit price deflator in year2  = 10/20

                                                = 0.5

Thus, the implicit value deflator proposes that prices have dropped by half. The cause for this is that the deflator evaluations how much Abby standards her appeals using prices dominant in year 1.

We can perceive from this perception that the green apples are appreciated more .And when Abby consumes more green apples in year 2, it appears that her consumption has augmented as the price deflator standards green apples more than the red apples.

Part E)

Abby considers that red apples and green apples as perfect alternatives, then the cost of living in this budget has not changed in both year it costs $10 to eat 10 apples.

Permitting to the CPl, however, the cost of living has gathered. This is because it only takes into justification the detail that the red apple price has gathered; the CPl overlooks the fall in the price of green apples as they were not in the consumption package in year 1.

In difference to the CPI, the implicit value deflator approximations the cost of living has shared.

CPI is calculated based on the Laspreyers Index method, where the amount in the numerator is the amount in the base year. Where as in the Passche price index, the numerator is the Recent price calculated for current capacity of consumption.

The Laspeyres index inclines to exaggerate rise (in a cost of living framework), while the Paasche index tends to understate it, because the indices do not account for the fact that consumers typically react to value variations by changing the amounts that they buy. For example, if prices go up for good X then, at ceteris paribus, amounts of that good should go downcast.

7 0
3 years ago
When the owner does not know when or where it disappeared form the owner's possession, it is considered to be
stich3 [128]

Answer:

lost property

Explanation:

3 0
3 years ago
The annual report for Malibu Beachwear reported the following transactions affecting stockholders’ equity:a. Purchased $350,100
cestrela7 [59]

Answer:

Malibu Beachwear

Indication of the effect (+ for increase, − for decrease, +/− for increase/decrease) of each of these transactions on total assets, liabilities, and stockholders’ equity:

a. Purchased $350,100 of common stock now held in treasury.

Assets (-$350,100) = Liabilities + Shareholders' Equity (-$350,100)

b. Declared cash dividends in the amount of $260,050.

Assets = Liabilities (+$260,050) + Shareholders' Equity (-$260,050)

c. Paid the dividends in (b).

Assets (-$260,050) = Liabilities (-$260,050) + Shareholders' Equity

d. Issued 101,000 new shares of $0.10 par value common shares for $2 per share.

Assets (+$202,000) = Liabilities + Shareholders' Equity (+$202,000)

e. Closed the Dividends account.

Assets = Liabilities + Shareholders' Equity

Explanation:

a. The purchase of common stock held in treasury implies that Malibu Beachwear bought its own shares from investors and paid cash.  The recording of the transaction involves a reduction in Cash (Assets) and Shareholders' Equity with the creation of Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock account and the balance is deducted from the Shareholders' Equity in the balance sheet.

b. By declaring cash dividends, Malibu Beachwear is returning to its stockholders part of the assets that belong to them.  This transaction reduces the Shareholders' Equity (Retained Earnings) and increases the liabilities with Dividends Payable in the sum of $260,050 respectively.

c.  The payment of the cash dividend by Malibu reduces the Assets (Cash) and the Liabilities (Dividends Payable) in the sum of $260,050.

d. The issue of 101,000 new shares of $0.10 par value for $2 per share by Malibu Beachwear increases its Assets (Cash) with the sum of $202,000 (101,000 x $2) and the Shareholders' Equity (Common Stock with $10,100 and Additional Paid-in Capital- Common Stock with $191,900).

e.  Closing the dividends account does not affect the accounting equation.  Instead, it affects the Income Summary (Statement of Retained Earnings) to which the account is closed.

f. The accounting equation of Assets = Liabilities + Equity is an important feature of the double-entry system of bookkeeping and financial accounting.  The equation implies that every transaction affects the two sides of the equation since two or more accounts are involved.  Where it does not affect the two sides, it implies that one side is affected twice or more.  This equation keeps the assets and liabilities + equity sides in balance at all times.  It also implies that Malibu Beachwear for every transaction, will have the assets equal the liabilities or equity.

4 0
3 years ago
An agency problem can occur when A. it is difficult or expensive for the owners to verify what the agent is actually doing. B. t
GaryK [48]

Answer:

The answer is E.

Explanation:

In a public company, the directors are the agents of the company while the shareholders are the principals(owners) of the company. Because most times, shareholders doesn't have the needed skills and experience to run businesses, they employ director/management (agent) to run their businesses. Most times there is conflict of interest, for example, the managers might prefer a risky business while the shareholders might prefer less risky, this type of scenario creates agency problem.

Agency problem (principal-agent problem) is a conflict of interest that happens when the directors (agent) don't fully represent the best interest of the shareholders (principal)

So all the options in the question represents agency problem.

4 0
2 years ago
Explain why unions play a reduced role in the US economy today.
zlopas [31]

Answer:

I won`t lie, unions are useless. They got everything they need.

Explanation:

There used to working conditions for absolute terrible . Then unions took action, boom done. Now unions is all about money. The leaders get rich off of people who want better pay like 15 bucks to flip a burger. That is just well, sad to be payed 15 an hour to flip burgers at a fast food place meant  for high schoolers. See what I am saying?

4 0
2 years ago
Read 2 more answers
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