Answer: (D) More will be able to pay for that product
Explanation:
Answer:
conscientiousness
Explanation:
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Answer:
private saving = $2700
Explanation:
given data
GDP = $10,000
Consumption = $6,000
Government spending = $1,500
deficit = $200
solution
we know here equation of GDP that is express as
GDP = Consumption + investment + Government spending ...................1
we consider here tax revenue that is = T
T - Government spending = - deficit
T = Government spending - deficit
T = $1500 - $200
T = $1300
so we can say from equation 1
( GDP - Consumption - T ) + ( T - Government spending ) = investment
and investment = private saving + public saving
so private saving will be
private saving = GDP - Consumption - tax revenue ................2
private saving = $10000 - $6000 - $1300
private saving = $2700
Answer:
(a)
January 1 Cash 20000 Dr
Bonds Payable 20000 Cr
(b)
June 30 Interest expense 850 Dr
Cash 850 Dr
Explanation:
a.
The bonds are issued at par value thus full cash equal to the par value of these bonds will be received on the issuance date.
b.
The ineterst is paid at 8.5% annually. The annual interest oayment equals 20000 * 0.085 = 1700
As this is paid semiannually in equal installments, the semi annual payment for interest on June 30 will be 1700 / 2 = $850
