Answer:
b. could be low because people might adjust their expectations quickly if they found anti-inflation policy credible
Explanation:
In the given situation, it is mentioned that the rational expectations proponets said that the sacrified ratio would be lesser as the people wants to adjust their expectations in a fastest way in the case when they found that the anti-inflation policy is credible
Therefore as per the given situation, the option b is correct
1. (a) Record a liability
2. (a) Record a liability
3. (b) Disclose in notes
<h3>What happens if you fail to record a liability?</h3>
Frequently, failing to register a responsibility entails also neglecting to record an expense. Income is decreased by expenses; but, in this case, this wasn't documented so that net income wouldn't be impacted when it should have been. The net income will be overstated as a result.
<h3>On a balance sheet, how do you record liabilities?</h3>
Unearned income or a "payables" account is normally where liabilities are recorded. In most cases, unless they are regarded as contra liabilities, they have a credit balance. As a result of discounting or lowering the amount owed, this kind of liability has a negative balance.
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Answer:
B) $114,000
Explanation:
To calculate the operating cash flows using the top down approach we can use the following equation:
operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid
operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000
I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.
Answer:
When interest rates decrease, It causes a ripple effect in the economy that stimulates growth and wealth creation. In the long run, it might cause inflation.
Explanation:
- If interest rates decrease, consumption increases because there is more disposable income available in each household.
- If interest rates decrease, investment increases since the cost of borrowing is cheaper.
- If interest rates decrease, government spending decreases .
- If interest rates decrease, the value of net exports increase because the economy us stimulated as a result of a business boom facilitated by low and affordable loans.
