You ordered a meal at Taco Bell for you and your friend. The total of the meal was $21.07.

If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will

vlabodo [156]

Answer:

A. create an inflationary increase in price level.

Explanation:

A shift of the AD curve to AD1 as a result of expansionary monetary policy, indicates that the AD curve increased and shifted to the right.

A shift to the AD curve to the right increase aggregate price and quantity.

I hope my answer helps you.

8 0

2 years ago

Mr. jackson borrowed money from his bank and on his life insurance to start a business. his interest rate on the bank loan was 1

Artyom0805 [142]

Let X be the amount borrowed from the bank and Y be the amount borrowed from the life insurance.

X + Y = 100,000

as he borrowed $100,000

0.10X + 0.12Y = 10900

10% = 0.10 and 12% = 0.12;

The total interest is $10,900

Solving the first equation for Y and multiplying the second equation by 100 to clear the decimals:

Y = 100,000 - X

10X + 12Y = 1090000

Plugging the first equation into the second:

10X + 12(100,000 - X) = 1090000

10X + 1200000 - 12X = 1090000 -------- distributive property

0 = 12X - 10X + 1090000 - 1200000 --- moves everything to right side, signs change; like to keep coefficient positive

0 = 2X -110000 --- combines like terms

110000 = 2x ---- solves for X

110000/2 = X --- adds 180000 to both sides; then divides by 4

X = 55000

Y = 100000 - 55000 = 45000

CHECK: 55000 x 10% + 45000 x 12% = 55000 x 0.10 + 45000 x 0.12

= 5500 + 5400 = 10,900

He borrowed 55000 from the bank and 45000 from the insurance.

8 0

2 years ago

An advantage of obtaining long-term funds by issuing additional stock, instead of issuing bonds is? Multiple Choice 01:22:21 - O

Nana76 [90]

Answer:

It lowers the chance of bankruptcy because dividend for stock are not required payments, but interest expenses for bonds are required payments.

Explanation:

When a comp[any issues additional stock instead of issuing bonds to obtain long term funds, the implications are:

Dividend payment on stock is optional payment as in the event of company incurring losses, no dividend is required to be paid. Such is not the case with bonds wherein a company must pay interest on debt irrespective of it's profitability or situation of financial crunch.
Bonds impose restrictions on the issuer such as restriction on payment of dividend, restriction on issue of additional debt or making cash expenditure. Such is not the case with issue of common stock which doesn't impose such restrictions.
Issue of Bonds hampers a company's credit ratings which is necessary for obtaining funds in the future. Such is not the case with issue of common stock.
But, dividend paid to stockholders isn't a tax deductible expense unlike Interest on debt which is tax deductible

4 0

3 years ago

A company is trying to decide whether to go ahead with an investment opportunity that costs $90,000. The expected incremental ca

Shtirlitz [24]

Answer:

The payback period for the $90000 investment is 5 years.

Explanation:

Payback period=Initial outlay/Annual net cash flow

This requires that the initial capital investment must be established,which is $90000

However, the investment gives expected incremental cash inflows of $50000 as well as outflows of $32000, as a result , annual net cash flow is $18000($50000-$32000)

In other words,payback period is $90000/$18000=5 years

The payback refers to number of years it takes the initial investment to be recouped.This means that any net cash inflows after 5 years are the project's return.

4 0

3 years ago

Bonita Industries had 205000 shares of common stock, 19100 shares of convertible preferred stock, and $1496000 of 5% convertible

s2008m [1.1K]

Answer:

EPS is $2.8 per share

Diluted EPS is $2.4 per share

Explanation:

Basic Earning per share is calculated dividing Earning for the year excluding preferred dividend by weighted average number of shares.

Basic EPS = (Net Income - Preferred dividends) / Weighted Average numbers of share

Basic EPS = ($592,000 - ( 19,100 x $0.9 ) / 205,000 = $2.8 per share

Diluted earning per share is calculated by adjusting all the convertible share options or securities in the outstanding share.

Diluted EPS = (Net Income - Preferred dividends) / Diluted numbers of share

Diluted EPS = ($592,000 - $17,190) / ( 205,000 + 39,000 )

Diluted EPS = $2.4 per share

All the option given are inconsistent with data given.

8 0

2 years ago