If the Fed decided that virtual money should be included in money supply, we would see a situation where both <u>M1 </u><u>and </u><u>M2 increase/ rise. </u>
M1 is:
- The most liquid money instruments
- Inclusive of cash and close instruments
If virtual money was counted as money, it would increase M1 because virtual money is very liquid as it can easily be converted to cash so it would be counted as M1.
M2 would increase because M1 is part of M2.
In conclusion, both M1 and M2 would increase.
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Answer:
e. consumer spending will increase.
Explanation:
If Congress decides to increase defense spending but does not increase taxes to cover the deficit spending, we can expect that consumer spending will increase because, unless in the event that the increase will be funded by borrowing from the private sector which will cause a crowding out effect, The increased spending by congress (government) will create a multiplier effect by causing job creation for the unemployed, which will imply that people will have more income to spend leading to rise in aggregate demand or consumer spending.
Furthermore, the fact that there will be no increase in taxes implies that consumers will have a higher disposable income for consumption purposes leading to a rise in consumer spending
<span>Crystal corporation makes $2,000 payments every month for leasing office equipment. Crystal recorded a lease payment as an operating lease.
An operating lease is a lease that is commonly used for a short term basis and asset. The operating lease payment is found on the financial statement.
</span>
Answer:
C
Explanation:
To estimate the amount of depletion for the current year?
We need to know the rate of depletion which
$100,000,000/2,500,000 = $40/ton
The amount of depletion for the current year will be
$40/ton x 500,000 tons = $20,000,000
