1. If the capital base is too large
2. If the monopoly controls a certain raw material
3. If the monopoly has patents
The correct answer is Microsoft PowerPoint
I am 100% correct!!!
Can I get Brainliest please?!
Answer:
Under the equity method, cash dividends reduce the carrying value of the investment account (asset account), they are not considered income. For e.g.
Journal entry to record investment
Dr Investment in Santo Corporation 100,000
Cr Cash 100,000
Journal entry to record cash dividend
Dr Cash 5,000
Cr Investment in Santo Corporation 5,000
Under the fair value method, cash dividends are considered income, therefore, they increase net income. For e.g.
Journal entry to record investment
Dr Investment in Santo Corporation 100,000
Cr Cash 100,000
Journal entry to record cash dividend
Dr Cash 5,000
Cr Dividend income 5,000
Answer:
Crowding out refers to the situation in which borrowing by the federal government raises interest rates and causes firms to invest less - option A.
Explanation:
Generally, a condition whereby a persistent government borrowing decreases the likelihood of the government repaying the borrowed loan or credit and consequently raises the interest rate is referred to as Crowding out. This situation would cause a decline in private investment level by the companies or firms.
Therefore, borrowing by the federal government raises interest rates, causing firms to invest less is the correct answer.
