Answer: Decrease, Increase, Price flexibility.
Explanation: According to classical economics, a decrease in aggregate demand causes the price level to DECREASE in the long run. On the other hand, an increase in aggregate demand causes the price level to INCREASE in the long run. These changes occur because of PRICE FLEXIBILITY.
In a flexible market the forces of demand and supply determines the prices of commodities in the market.
As the demand Falls the prices also fall as the demand rises the prices of commodities also rises.
Answer:
E. None of these answer choices are correct.
Explanation:
Upon receipt of the advance payment from Cactus Jack, Nike should debit its Cash Account and credit Deferred Revenue by $300,000. When the equipment is delivered to Jack and the additional $100,000 is received, the Deferred Revenue account is debited with $300,000 while the Sales Revenue is credited with $400,000 with additional debit to the Cash Account of $100,000.
Answer:
the expenditures are missing, so I looked for a similar question:
- 1/2/2014 $400,000
- 7/1/2014 $1,200,000
- 12/31/2014 $1,200,000
- 3/31/2015 $1,200,000
- 9/30/2015 $800,000
Weighted average expenditures for 2014:
January 1 = $400,000 x 1 = $400,000
July 1 = $1,200,000 x 1/6 = $600,000
December 31 = $1,200,000 x 0 = $0
total = $1,000,000
Since the company borrowed $2,200,000 specifically for this construction project, then capitalized interests = $1,000,000 x 12% = $120,000
Answer:
$490,566.04
Explanation:
Calculation for how much will you pay for the policy
Using this formula
Present value of perpetuity= Investment policy Annual inflows/ Required rate of return
Let plug in the formula
Present value of perpetuity=$26,000/0.053
Present value of perpetuity=$490,566.04
Therefore the amount that you will pay for the policy is $490,566.04
Answer: Bonds are generally a safer, or less risky, investment than are stocks
Explanation: The biggest pro of investing in stocks over bonds is that history shows, stocks tend to earn more than bonds - especially long term. Additionally, stocks can offer better returns if the company growth is exponential, earning the investor potentially millions on an originally minuscule investment.
Many investors are under the impression that bonds are automatically safer than stocks. After all, bonds pay investors a regular fixed income, and their prices are much less volatile than those of stocks. Conversely, a stock is low-risk for the issuing company, but it's high-risk for investors.
