Answer:
a. decreases the interest rate and so investment spending increases.
Explanation:
An increase in government spending has a crowd-out effect on the economy as interest rate rises since government borrows more than many businesses in terms of size and volume. The opposite effect results when government spending decreases.
Answer:
debit Sales $15,000; debit Purchases Returns and Allowances $200 and credit Income Summary for $15,200
Explanation:
Based on the information given the CLOSING ENTRY that RB Auto would make at the end of the accounting period to close their revenue accounts and income statement accounts with credit balances are:
Debit Sales $15,000
Debit Purchases Returns and Allowances $200 Credit Income Summary for $15,200
($15,000+$200)
(To close revenue accounts and income statement accounts)
This is called Full Employment or sometimes referred to as “economic peak”.
Do you have answer choices?
Answer:
Selling stocks to raise money is a practice known as equity financing. Stocks are equity. Equity are assets minus liabilities.
Stocks would give Kenji partial ownership of the firm. The amount of ownership demends of how many stocks he buys.
If NanoSpeck runs into financial difficulty, people that hold bonds will be paid first than people who hold stocks. Bonds, contraty to stocks, are liablities, not equity, and when a company declares bankruptcy, it has to pay liablities first, and if there is any money left, it then pays to stockholders.
A) Untrue - If Kenji buys stocks from another stockholder, the revenue goes to the stockholder, not to NanoSpeck.
B) True - The value of stocks largely depend on economic expectations. If the economy is expected to enter a recession, the value of Kenji's stock will most likely go down.
C) True - If the market considers that NanoSpeck is in a healthy financial position, then, the Nano Speck stocks that Kenji holds will likely rise in value.
Explanation:
The Chavez family has two options when applying a house loan for 30 years which is amounting to $250,000. First, the will not take the points with a monthly payment of $1580 while if they take the points, they will have a monthly payment of $1560. What they did was they did not buy the points and the reason for this was they are planning to sell the house after 5 years.
