Answer: All Variables will remain unchanged
Explanation:
Monetary Policy has no effect on a country's domestic currency because it is simply ineffective when it is in a fixed exchange rate regime. This is because, when monetary policy is used, it tends to change the exchange rate but because the Fed will be engaging in a fixed exchange regime, it will act to normalise the exchange rate which will bring the currency back to equilibrium.
For instance, if the Fed embarks on expansionary monetary policy and pegs its currency to the Euro. The expansionary policy will lead to a drop in interest rates which is supposed to help GDP. However as a result of lower rates, the dollar will depreciate and more people will demand Euros. The Fed will intervene to keep the Euro and the Dollar at the same level (fixed exchange) and sell Euros in its reserves while reducing dollars. This will bring the interest rate and currencies back to its original level so there will be no benefit.
Monetary policy is ineffective under a Fixed Rate regime so one of the variables will change.
Answer:
d. the AD curve to shift inward.
Explanation:
A housing bubble refers to an economic situation in housing markets where the prices of houses increases due to a rapid increase in demand, when the supply rate is low. Many Economists argued, Federal Reserves intervention to burst the bubble could have cooled down the situation. But doing so will only make the home prices to become unsustainable and this will lead to an inward movement of the aggregate demand curve.
Answer:
Journal entry to record the Sale of Patent
Debit : Cash $750,000
Credit : Patent at Book Value $120,000
Credit : Profit and Loss $630,000
Journal entry to record the Sale of Equipment
Debit : Cash $325,000
Debit : Profit and loss $75,000
Debit : Accumulated depreciation $150,000
Credit : Equipment at Cost $550,000
Explanation:
During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.
A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.
A lack of credibility. Sally hasn't built up a credible work history because she is new too the team and doesn't show understanding because she asks too many questions, so Ellen shows a lack of trust in her abilities.
Answer:
List of debts not discharged by bankruptcy are explained below in detail
Explanation:
Bankruptcy often gives account holders a new opening through either the liquidation or rearrangement of debts. In the two cases, the court is said to discharge the debts. Not all debts can be released, in any case, and a few are exceptionally hard to release. The most widely recognized debts not discharged by the court incorporate tax liens, student loans, mortgages. More importantly, debts which incur due to misconduct are fraud, recklessness and embezzlement behaviors. Some other debts that are not discharged by bankruptcy are court fees, social security tax and tax penalties.