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3 years ago

Which of the following is a correct description of the crowding-out effect of deficit spending?

Business

1 answer:

borishaifa [10]3 years ago

5 0

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.

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True or False. A post-closing trial balance is a list of all accounts and their balances after we have updated account balances

kotegsom [21]

Answer:

True

Explanation:

There are two columns in the trial balance, namely columns of debits and columns of credits. It is always important to balance the total debit and credit columns. The debit columns reflect assets and expenses side while sales, stockholder equity, and the liability side are listed in the credit column.

After passing the adjusting entries, the account balances are updated which we called a post-closing trial balance

So, the given statement is true

7 0

3 years ago

A client will soon be completing a course of inpatient treatment for the treatment of schizophrenia. At what point should the ca

Evgesh-ka [11]

ANSWER:

Upon admission to the inpatient setting.

STEP-BY-STEP EXPLANATION:

An inpatient admission is generally appropriate when you're expected to need 2 or more midnights of medically necessary hospital care, but your doctor must order such admission and the hospital must formally admit you in order for you to become an inpatient.

4 0

3 years ago

Creative Images Co. offers its services to individuals desiring to improve their personal images. After the accounts have been a

Marysya12 [62]

Answer and Explanation:

The journal entries are shown below:

Fees Earned 694,400

To Wages Expense 471,000

To Rent Expense 69,500

To Supplies Expense 11,100

To Miscellaneous Expense 14,900

To Violet Lozano, Capital 127,900

Violet Lozano, Capital 12,000

To Violet Lozano, Drawing 12,000

Now the post trail balance is

Cash 12,700

Accounts Receivable 28,190

Supplies 1,780

Equipment 125,600

Accumulated Depreciation 41,910

Accounts Payable 15,240

Salaries Payable 1,400

Unearned Rent 5,720

Sonya Flynn, Capital 104,000

Totals 168,270 168,270

5 0

2 years ago

Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic

maksim [4K]

Answer:

Sally is guilty of insider trading violation which she has done by tipping the information to Alice.

Explanation:

Sally has committed an unlawful practice by giving away inside information to a friend named Alice. The inside (confidential) information is used to get tipped off, or it can be used to tip off someone else which leads to further unlawful practices which in this case is ‘Check Kitting’, and it is a type of theft and larceny which is used to get the advantage of non-existing funds.

5 0

3 years ago

Partial balance sheets and additional iformation are listed below for Sowell Company.

musickatia [10]

Answer and Explanation:

The preparation of the operating activities section is presented below

Cash Flows from operating activities

Net Income $88,000

Adjustment made for non cash items:

Depreciation Expense $19,000

Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)

Less: Increase in Inventory $(5000) ($40,000 - $35,000)

Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)

Net cash flows from operating activities $109,000

3 0

3 years ago