False.
While it is true that individuals can choose what to do with their money, both saving and investing are smart decisions when done right.
The majority of private sector employment in the u.s. economy is in the services.
The private sector is the part of the economy, generally pertain to as the citizen sector. Which is ruled by private individuals or groups, usually as a means of firm for profit and it is not regulated by the State.
What’s the question? Am I missing something?
Answer:
Contractionary fiscal policy to prevent real gdp from rising above potential real gdp would cause the inflation rate to be <u>LOWER</u> and real gdp to be <u>LOWER</u>.
Explanation:
A government engages in contractionary fiscal policy when it decreases spending or increases taxes. This is done to lower the economy's inflation rate, but it also decreases aggregate income which will decrease aggregate supply, resulting in a lower real gross domestic product.
On January 1, 2015, the date of issuance, the entry is:
2015
Jan 1
Cash 1,000,000
Bonds Payable 1,000,000
On each January 1 for 5 years, beginning 2015 January 1 (ending 2020 January 1), the entry would be (Remember, calculate interest as Principal x Interest x Time):
Jan 1
Bond Interest Expense ($1,000,000 x 10% x 1) 100,000
Cash 100,000
On January 1 (5 years later), the maturity date, the entry would include the last interest payment and the amount of the bond:
Jan 1
Bond Interest Expense ($1,000,000 x 10% x 1) 100,000
Bonds Payable 1,000,000
Cash 1,100,000
