Answer: B- Liquidity Trap
Explanation:
Liquidity trap is an economic situation in which monetary policy becomesineffective due to low interest rates and high savings rates.
Bonds have an inverse relationship to interest rates, therefore consumers would want to keep Thier funds in cash believing that interest rate may soon rise in near future
At the same time, central bank efforts to increase economic activity are terminated as they are unable to lower interest rates to provide incentives to investors and consumers and without demand, businesses would not grow.
Here, in the case of Japan, the central bank reduced real interest rates to zero percent, but investment spending did not respond enough to bring the economy out of recession making Japan experience Liquidity Trap
Answer:
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Answer:
A) location economies.
Explanation:
Multinational corporations (like Unilever) are able to get advantage from the different cultures, economies and world markets. Location economies refers to the strategy of producing goods at locations that optimize their profit ratios, especially through low costs.
In this case, Unilever is reaping the benefits of a location that provides hundreds of volunteers that are willing to test their products for free, even though some might be hazardous. It is always cheaper to run biological tests with poor people, that is why pharmaceuticals test their new drugs in Africa or Southeast Asia. There will always exist the possibility that something goes wrong but it is much cheaper to fix those mistakes in China than in the US or the UK.
Answer:
1) May 19: Issued 2,000 shares of $1 par value common stock for cash of $10.00 per share.
Dr Cash 20,000
Cr Common stock 2,000
Cr Additional paid in capital 18,000
Jun. 3: Issued 200 shares of $2, no-par preferred stock for $10,000 cash.
Dr Cash 10,000
Cr ´Preferred stock 10,000
Jun. 11: Received equipment with a market value of $78,000 in exchange for 8,000 shares of the $1 par value common stock.
Dr Equipment 78,000
Cr Common stock 8,000
Cr Additional paid in capital 70,000
2) Total paid in capital = $20,000 + $10,000 + $78,000 = $108,000
The Department of the Treasury is your answer
