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3 years ago

What does it mean when the feds lower interest rates

1 answer:

3 0

Interest rates are lowered by the Fed in order to boost economic development. Reduced finance costs might entice people to borrow and invest. When interest rates are excessively low, however, they might stimulate excessive growth and perhaps inflation. On the other hand, if growth becomes excessive, the Fed will boost interest rates.

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During August of 2011 Nickle Publishing received $24,000 for 1-year subscriptions to a new magazine. Magazines are mailed to sub

jok3333 [9.3K]

Answer:

Debit Unearned/Deferred revenue $8,000

Credit Sales revenue (p/l) $8,000

Being entries to recognized earned revenue for the period

Explanation:

August of 2011, 1 year subscription of $24,000

Revenue earned per month = $24,000/12 = $2,000

Revenue earned (between September and December) = $2,000 × 4

= $8,000

To recognize this, adjusting entries required on Dec. 31, 2011

Debit Unearned/Deferred revenue $8,000

Credit Sales revenue (p/l) $8,000

Being entries to recognized earned revenue for the period

7 0

4 years ago

The LM curve is steeper the ______ the interest sensitivity of money demand and the ______ the effect of income on money demand.

Anna [14]

The correct option is, (d) smaller, greater.

The LM curve is steeper the smaller the interest sensitivity of money demand and the greater the effect of income on money demand.

<h3>What does a steeper LM curve mean?</h3>

The LM curve will be steeper if the income-elasticity of the demand for money is higher and the interest-elasticity is lower.
The LM curve is virtually vertical when the demand for money is generally indifferent to the interest rate.

<h3>What causes the LM curve to shift?</h3>

The LM curve shifts right as a result of monetary stimulation, or boosting the money supply, leading to higher output and lower interest rates.
The IS curve is shifted to the right by fiscal stimulus, or boosting government spending and/or lowering taxes, which raises interest rates while driving up output.

<h3>What is income sensitivity of money demand?</h3>

The greater the interest rate, as the minus sign suggests, the more likely people are to invest their money rather than have it available for consumption.
The income sensitivity of real money demand and the interest sensitivity of real money demand are the two variables that are regulated by sensitivity coefficients.

Learn more about LM curve here:

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8 0

2 years ago

In 2013, teller company sold 3,000 units at $400 each. variable expenses were $280 per unit, and fixed expenses were $160,000. w

amid [387]

Total rev = 3000x400 = 1.2 million - (3000 x 280) 840,000 - 160,000 = 200,000 in net income.

4 0

3 years ago

The establishment of all of the charge numbers for a project is called the: Select one: a. Work package codes b. Code of account

erastovalidia [21]

Answer: Code of accounts.

Explanation:

In project management, a code of accounts is a vital tool in managing any project because it makes it easier to differentiate numerous parts of a project without the need to remember terminologies or lengthy names.

A code of accounts is the unique numbering or lettering whereby letters or numbers are attached to each unique part of the project during the work breakdown structure (WBS) stage. The assigned numbers and letters should not be changed throughout the project's life cycle.

4 0

3 years ago

The most significant difference between perfect competition and monopolistic competition is that

Arisa [49]

<span>Perfect competition, a market structure, where there are many sellers selling similar goods to the buyers. But monopolistic competition, is a market structure, where there are numerous sellers, selling close substitute goods to the buyers. Also the price in perfect competition, is determined by demand and supply forces, for the whole industry, comparing with monopolisti competition that every firm offer products to customers at its own price.</span>

7 0

3 years ago