Answer:
The correct answer is 7%.
Explanation:
The real GDP of an economy is said to be increasing at an annual rate of 5%.
The inflation rate is kept low at 2%.
The velocity of money is assumed to be constant.
In this situation, the annual money growth rate will be equal to the sum of the inflation rate and rate of growth of real GDP.
Annual money growth rate
= Inflation rate + Real GDP growth rate
= 2% + 5%
= 7%
Based on the information given, it can be noted that revaluation of assets isn't applicable to land. Therefore, the amount will be $0.
Revaluation of assets simply mean the change in the market value of assets. It can either be increasing or decreasing.
From the information given, the amount that the land account be increased in 2018 is $0 because revaluation of assets isn't applicable to land.
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I'm pretty sure it's D- All of the above
Answer:
<h2>Spending on infrastructure projects is an example of <u>Discretionary Fiscal Policy</u> aimed at increasing real GDP and employment.</h2>
Explanation:
- A discretionary fiscal policy basically refers to the manipulation or adjustment of various fiscal instruments by the government such as public taxes and government spending.
- The aim of discretionary fiscal policy is to adjust the overall macroeconomic condition in any country based on the existing or current situation or scenario.
- Now,infrastructural spending is part of fiscal policy or instrument to adjust the macroeconomic condition of the country as reflected by necessary modification in the GDP and employment level.Hence, higher infrastructural spending by the government would expectedly increase the residential and commercial construction projects in the country thereby,enhancing the GDP and the employment level in the country and boost the overall economy.
Answer:
Prepare journal entries for each transaction wherever necessary.
Explanation:
October 15,2021
Retained Earnings 11.6*5*5% Dr.$2,900,000
Cash Cr.$2,900,000
Treasury Stock 100,000*31.4 Dr.$3,140,000
Cash Cr.$3,140,000