Answer:
D. They provide the four factors of production and spend money on the product market.
Explanation:
In circular flow of business, all the players namely; household, government agencies, firms and others in an economy have an important role to play.
The level of a nation's employment status, price level and income are determined as a result of various interactions among firms/businesses, household and government agencies.
When a unit spends money, it becomes the income of another unit. Household goes to market with their monies to buy goods and services, while firms goes to the factor market to buy the resources, which are owned by the household, to produce the goods and services.
As for the government agencies, they collect taxes on the goods and services produced and on income(both household and firms) . Government also buys goods and services inorder to produce specialize goods.
Through these interactions, money and business changes hands from the household to the firm and then to government. It goes back to the household and the list goes on and on.
Answer:
Cash 291000 Dr
Factoring fees expense 9000 Dr
Accounts Receivables 300000 Cr
Explanation:
The factoring charge or fess is an expense for Laurel Company for the service provided by Hardy factors. So, whenever factoring is done, the ffactoring fees expense account will be debited as expense will increase. Th cash received is 300000 * 0.97 = 291000
The factoring fees is 300000*0.03 = 9000
As a result all of the accounts receivables will be credited from the books.
Answer:
The correct answer is option B.
Explanation:
A recessionary gap implies that the resources are not being fully utilized. This means resources are being wasted.
An expansionary gap, on the other hand, means that the economy is producing at more than potential level. The price level at this point is high. There is a tendency for inflation to develop in this situation.
To curb the recessionary gap the economy can adopt the expansionary fiscal and monetary policy. While to curb expansionary gap, contractionary monetary and fiscal policy can be adopted.
The current or checking account typically has very high liquidity, low or no interest, and low minimum balance. The current or checking account usually used for the daily transaction and they have a similar trait like the e-cash<span>. The current or checking account is one of three types of the bank deposit account.</span>
