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3 years ago

Which of the following events would most likely reduce aggregate demand?

Business

1 answer:

Lubov Fominskaja [6]3 years ago

6 0

Answer:

d) An increase in real interest rates

Explanation:

Aggregate demand is defined as sum total of demand for goods and services within a country. It is expressed as the total cash that is exchanged for goods and services at a particular price level within a period of time.

An increase in interest rates will mean that cost of borrowing funds by businesses will increase.

The increased cost of running the business will cause prices of goods to rise.

Aggregate demand has an inverse relationship with price. As price rises aggregate demand will fall.

Consumers are less willing to buy expensive goods

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shusha [124]

Answer and Explanation

Given:

Accounts receivable balance = $598,000

Percentage of receivables that are uncollectible = 5% or 0.05

Uncollectible receivables = 0.05 × 598,000 = $29,900

Adjusting journal entry to record bad debt expense is:

Particulars Debit Credit

Bad debts expense XXXXX

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(Being bad debts incurred)

Noe, Allowance for doubtful debts has a credit balance of $4,800.

Bad debt incurred = 29,900 - 4,800 = $25,100

So adjusting entry :

Particulars Debit Credit

Bad debts expense $25,100

Allowance for doubtful debts $25,100

(Being bad debts incurred)

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4 years ago

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Montano1993 [528]

Answer:

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aleksandrvk [35]

Answer:

Option D is the correct option

Explanation:

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What is a black market and why might it alleviate shortages?

Ksenya-84 [330]

<u>Answer:</u>

Black markets are markets that are not under the administration's control. Items sold in an underground market are regularly unlawful; for example, counterfeit DVDs, counterfeit brand items, and illicit medications. Bootleg trades frequently are eased by a lack of a product.

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balandron [24]

Answer:

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