Suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was imported. Net exports equal $4 billion.
In general, real GDP is calculated by dividing nominal GDP by the GDP deflator (R). For example, if the economy's prices rise by 1% from the base year, the deflation rate is 1.01. If nominal GDP is $1 million, real GDP is calculated as $1,000,000 / $1.01 or $990,099.
Equity and bond values are not included in GDP as they are not reissued annually. They may have been issued last year. Second, the stock a person buys is goods and services, and the company reuses the money invested to buy the asset, so the value is calculated twice.
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Answer: B. there is also an excess demand for bonds
Explanation:
When there is an excess supply of money in the economy, there is also an excess demand for bonds.
This is because in his case, rather than holding money, individuals will want to increase their being holdings and therefore, this will lead to the reduction in their holding of money. Equilibrium will further be restored as there'll be reduction in interest rate.
Answer:
B) Stable monetary unit concept
Explanation:
Based on the information given the concepts or principles of accounting that was being violated is called STABLE MONETARY UNIT CONCEPT reason been that this type of accounting principle believe that the dollar purchasing power should often be stable or fixed regardless of the increase or rise in market price which is inflation which is why an accountant will often ignore the impact of inflation on goods and services based on the assumption of the principle of STABLE MONETARY UNIT CONCEPT.
Therefore Tate corporation has violated the accounting principle of STABLE MONETARY UNIT CONCEPT by adjusting the building amount that was purchase in 1970 in the Accounting record from the amount of $30,000 to the amount of $75,000 due to the effect of inflation.
Answer:
$87.25
Explanation:
Calculation for the effective price paid to repurchase the stock
Using this formula
Effective price = Strike Price + Price
Let plug in the formula
Effective price =$80+$7.25
Effective price =$87.25
Therefore the effective price paid to repurchase the stock will be $87.25
Answer:
$6,000
Explanation:
The computation of the interest expense is shown below:
= Total amount borrowed × interest rate × number of months ÷ total months in a year
= $300,000 × 8% × 3 months ÷ 12 months
= $6,000
The three months is calculated from October 1 to December 31
We have to apply the simple interest formula so that the accurate amount can come.
