Match the items according to their impact on aggregate demand (AD).

What are two examples of when credit, if used responsibly,can be positive

riadik2000 [5.3K]

With credit, you can get a car, or anything that is expensive, if you have bad credit, it would be hard to get these things, with credit, you can also try things for free, people who have bad credit, are not trusted to return the items they try.

3 0

3 years ago

chandler Communications'CFO has provided the following information: The company's capital budget is expected to be $5,000,000. T

vazorg [7]

Answer: $3,000,000

Explanation:

From the question, we are informed that a company's capital budget is expected to be $5,000,000 and that the company's target capital structure is 70 percent debt and 30 percent equity.

Equity = 30% × $5,000,000

= 30/100 × $5,000,000

= 0.3 × $5,000,000

= $1,500,000

Debt = 70% × $5,000,000

= 70/100 × $5,000,000

= 0.7 × $5,000,000

= $3,500,000

We are further told that the company's net income is $4,500,000 and since we be calculated the equity that will be needed to finance the capital budget as $1,500,000. Therefore, portion of its net income should it pay out as dividends this year will be:

= $4,500,000 - $1,500,000

= $3,000,000

5 0

3 years ago

On January 1, 2019, Electro Inc. issued $740,000 of 7.5%, four-year bonds that pay interest semiannually on June 30 and December

Strike441 [17]

Answer:

Cash 680,186 debit

discount on BP 59,814 debit

Bonds payable 740,000 credit

--to record issuance of the bonds--

interest expense 34009.3 debit

discount on BP 6259.3 credit

cash 27750 credit

--to record first payment of the bonds--

Explanation:

procceds 680,186

face value 740,000

discount on bonds payable 59,814

bond rate (semi-annually) 7.5% / 2 = 0.0375

market rate (semi-annually) 10% / 2 = 0.05

The first payment will be:

cash proceeds: face value x bond rate:

740,000 x 0.0375 = 27,750

interest expense: carrying value x market rate

680,186 x 0.05 = 34,009.3

amortization on discount on BP:

34,009.3 - 27,750 = 6259.3

5 0

3 years ago

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result o

topjm [15]

Answer:

d. changes in the supply of and/or demand for dollars in the global currency market.

Explanation:

Floating exchange rate can be defined as a system in the macro economics or in economic policy where mechanism of the currency price of any country or nation can be determined by the forex market which is based on the supply and the demands relative to some other country's currencies.

In result of the foreign exchange values, the currency value of one country fluctuates.

Thus in the context, the value of dollar of United States changes depending on the changes or exchanges of dollar in the global market of currency.

8 0

4 years ago

Jennifer and Jamar are married and live in a home with their 13-year-old dependent son, Oscar. This year, they had the following

julia-pushkina [17]

Answer:

d. AGI $151,088; taxable income $108,630.

Explanation:

First we need to calculate Gross Income

Gross Income = Salary Income + Business Income + Dividend Income

Gross Income = $60,000 + $95,000 + $2,800

Gross Income = $157,800

Now Calculate adjusted gross income

Adjusted Gross Income = Gross Income - Self Employment Tax

Adjusted Gross Income = $157,800 - $6,712

Adjusted Gross Income = $151,088

Deduction will be as follow

Higher of

Itemized Deduction = $19,200

Standard deduction = $24,400

So, Standard deduction will be made because it is higher

QBI deduction = $95,000 x 20% = $19,000

Taxable Income = Adjusted Gross Income - Standard Deduction - QBI deduction

Taxable Income = $151,088 - $24,400 - $19,000

Taxable Income = $107,688

3 0

4 years ago