Answer: Please see answer in explanatory column
Explanation:
1) Journal entry to establish the fund on January 1st.
Account Debit Credit
Petty Cash $250
Cash $250
2) journal entry to record re-imbursement on January 8.
Account Debit Credit
Postage expense $43
Merchandised inventory $14
Delivery Expense $16
miscellaneous expenses, $32
Cash $105
3) journal entries to record reimbursement of the fund and increment to $300 on January 8
Account Debit Credit
Petty Cash $150
Cash $150
Petty cash increasing to $300, therefore the increased amount
$300- $250= $150
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Answer: A. Increase / Appreciate / Depreciate
Explanation:
If disposable income increases more in South Africa than it does in the U.S., assuming the U.S. is a trading partner to SA, they will export more goods to SA because South Africans will demand more goods and services as they can afford to.
This will lead to a higher demand for the U.S. dollar which is the price that the U.S. goods will be denominated in and a higher demand for the dollar will make it appreciate.
The South Africa rand will depreciate because there is less demand for it relative to the U.S. dollar.
Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
