Complete Question:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to: Multiple Choice decrease, but equilibrium quantity to remain constant. decrease, but equilibrium quantity to increase. increase, but equilibrium quantity to decrease. Increase, but equilibrium quantity to remain constant.
Answer:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to:
decrease, but equilibrium quantity to increase.
Explanation:
Money demand equilibrium occurs at the interest rate at which the quantity of money demanded equals the quantity of money supplied. This implies that all other things unchanged, a shift in money demand will lead to a change in the equilibrium interest rate. This result will come about because with the reduced interest rate, more consumers and businesses will be angling for more loans.
Answer:
Goodwill = $35,000
<u>Journal</u>
J1
Investment in Marino $300,000 (debit)
Cash $300,000 (credit)
J2
inventory $10,000 (debit)
equipment $230,000 (debit)
Trade Receivable $25,000 (debit)
Goodwill $35,000 (debit)
Investment in Marino $300,000 (credit)
Explanation:
Goodwill is the excess of Purchase price over fair value of Assets and Liabilities transferred in a Business combination agreement.
Goodwill = Purchase price - Net Assets Transferred (fair value)
= $300,000 - ($10,000+$230,000+$25,000)
= $35,000
C $1380 and d 690 dollers per month
Answer:
Capitalism
Explanation:
Private individuals or firms own economic resources and control their use.
Voluntary trade is the mechanism that drives activity in a capitalist system.
The owners of resources compete with one another over consumers, who in turn, compete with other consumers over goods and services.
Answer: Average collection period = 36.69 Days
Explanation:
Given that,
Beginning accounts receivable balance = $14,000
Last year sales = $184,000
Ending accounts receivable balance = $23,000
Therefore,
Average accounts receivable:
=
=
= $18,500
Here we are assuming 365 days in a year.
Average collection period =
=
= 36.69
∴ Average collection period = 36.69 Days