Answer:
Rainbow Company
The percentage depreciation Rainbow will use is:
= 40%
Explanation:
a) Data and Calculations:
Purchase (list) price = $31,000
Cash discounts = (3,000)
Additional interior cost 5,000
Net purchase price = $33,000
Salvage value = (5,000)
Depreciable amount = 28,000
Estimated useful life = 5 years
Double-declining-balance method of depreciation:
Depreciation rate = 100/5 * 2 = 40%
Estimated usage for the car = 140,000 miles
Annual usage:
Year 1 = 20,000
Year 2 = 30,000
Year 3 = 40,000
Year 4 = 30,000
Year 5 = 20,000
January 1, 2026 sales proceeds = $6,000
If the exchange rate for Canadian and U.S. dollars is 0.92777 to 1, this implies that 13 Canadian dollars will buy ____ worth of U.S. dollars. (Select the nearest answer.)
Answer:
U.S. dollars = 14.012 U.S. dollars
Explanation:
Below is the exchange rate:
0.92777 Canadian dollars = 1 U.S dollars
Thus to find the amount of U.S. dollars bought from the 13 Canadian dollars, just divide the 13 Canadian dollars from 0.92777. Therefore the resulting answer will be the U.S. dollars.
U.S. dollars = 13 / 0.92777
U.S. dollars = 14.012 U.S. dollars
If Mike asked customers to complete a customer feedback survey after using his car detail service, he probably increased the level of customer involvement during the __________ step of the process. a.) information seeking b.) post-purchase evaluation c.) need identification d.) problem recognition
Answer: b.) post-purchase evaluation
Explanation:
Post-purchase evaluation as the term implies, is done after the product is purchased and checks how well the product does what it is meant to do.
When Mike asks customers to complete a feedback survey, they will indicate on the survey what they thought of his service such that he would know whether he fulfilled his purpose for the service. This therefore includes the customers in the post-purchase evaluation.
The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
Answer:
Depletion
Explanation:
The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called Depletion
Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 16% and a standard deviation of returns of 20%. The risk-free asset has an interest rate of 4%. Calculate the expected return on the resulting portfolio.
Answer: 28%
Explanation:
If the initial wealth is given as 100 and since the initial wealth is thesame as the borrowed amount, this will be 100 as well. Then, the weight of the risk free asset will be:
= Amount invested in risk free / Initial wealth
= -100/100
= -1
Portfolio weight equals:
= 1 - (-1) = +2
Therefore, the expected return on the resulting portfolio will be:
= 2 × 16% + (-1 × 4)
= 32 - 4
= 28%
A company just paid a dividend of $1.75, and those dividends are expected to grow at a constant rate of 5.5% forever. The stock price of this company is $74.58, what is the stock's expected dividend yield?
Answer:
2.48%
Explanation:
Dividend yield = Expected annual dividend / Price today
Dividend yield = $1.75 * 105.5% / $74.58
Dividend yield = $1.84625 / $74.58
Dividend yield = 0.0247553
Dividend yield = 2.48%
So, the stock's expected dividend yield is 2.48%.
Over the past year, productivity grew 2%, capital grew 1%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow
Answer:
The output growth rate is 3%.
Explanation:
Use the growth accounting equation as follow
ΔA% = ΔY% - αΔK% - βΔL%
Where
∆A = change in productivity = 2%
∆K = growth in capital =
∆L = growth in labor =
α = elasticity of capital = 0.2
β = elasticity of labor = 0.8
∆Y = change in output = ?
Placing values in the formula
2% = ΔY% - ( 0.2 x 1% ) – ( 0.8 x 1% )
2% = ΔY% - 1%
ΔY% = 2% + 1%
ΔY% = 3%
Hence, the output growth rate is 3%.
Suppose a financial manager buys call options on 26,000 barrels of oil with an exercise price of $111 per barrel. She simultaneously sells a put option on 26,000 barrels of oil with the same exercise price of $111 per barrel. What are her payoffs per barrel if oil prices are $106, $107, $111, $115, and $116?
Answer:
Explanation:
Suppose a financial manager buys call options on 24,000 barrels of oil with an exercise price of $119 per barrel. She simultaneously sells a put option on 24,000 barrels of oil with the same exercise price of $119 per barrel. What are her payoffs per barrel if oil prices are $103, $108, $119, $130, and $135? (Leave no cells blank - be certain to enter "O" wherever required. A negative answer should be indicated by a minus sign.) 130 $ 135 Market price Payoffs per barrel 108 $ 119 103 $ $
Which of these statements about a VA appraisal is false? A CRV is valid for nine months on existing property. The appraisal must be done by a VA certified appraiser. The appraisal is called a Certificate of Reasonable Value. A veteran may pay more for a property than the CRV value.
Answer:
A CRV is valid for nine months on existing property.
Explanation:
The Department of Veterans Affairs usually grants mortgage loans to veterans. Before the loan is given an appraisal must be undertaken by a certified VA appraiser.
After appraisal a Certificate of Reasonable Value (CRV) is issued.
The CRV has a validity of 180 days (that is 6 months).
That means for this period the appraised value will remain the same even if there are adjustments in the contract terms.
So it's false that validity period of CRV is 9 months
In taking a physical inventory at the end of year 2013, Grant Company forgot to count certain units. Indicate how this error affects the following:
(a) 2013 cost of goods sold.
Overstates 2013 cost of goods sold.
Understates 2013 cost of goods sold.
None of the above.
(b) 2013 gross profit.
Understates 2013 gross profit.
Overstates 2013 gross profit.
None of the above.
(c) 2013 net income.
Understates 2013 net income.
Overstates 2013 net income.
None of the above.
(d) 2014 net income.
Understates 2014 net income.
Overstates 2014 net income.
None of the above.
(e) The combined two-year income.
The understated 2014 net income and the overstated 2013 net income combine to yield a correct total income for the two-year period.
The understated 2013 net income and the overstated 2014 net income combine to yield a correct total income for the two-year period.
(f) Income for years after 2014.
The 2013 error will affect years after 2014.
The 2013 error will not affect years after 2014.
Answer:
I can't understand the question
The over-the-counter securities market Multiple Choice is similar to organized stock exchanges. does not include illiquid bank stocks. does not trade corporate bonds. does not have a central location. accounts for the least total dollar value of all of the secondary markets.
Answer: is similar to organized stock exchanges.
Explanation:
Over-the-counter simply means the trading of securities fir the companies that are not listed on a formal exchange. Such securities are traded through a dealer network rather than on the centralized exchange.
Some securities that trade over the counter include corporate stocks,US government securities, and municipal securities. The over-the-counter securities market is similar to organized stock exchanges.
Select the item below that is a characteristic of holistic marketing: _________
a. Implementing targeted marketing programs for green products.
b. Focusing on marketing individual products to consumers
c. Combining different marketing techniques to sell a product
d. Considering all business aspects when marketing products
Answer:
D. Considering all business aspects when marketing products
Explanation:
When a whole business (in general) is considered for the marketing strategy, it forms a holistic marketing approach. In this type of strategy different departments of an organization come together to give positive inputs that create a robust business marketing strategy.
The Glad Products Company produces and markets several consumer products including Press 'n Seal plastic wrap that creates a Tupperware-like seal. Sales for the product had stopped growing and profit leveled off, so the company set up a website to collect customer suggestions for alternative uses. They received such suggestions as protecting computer keyboards from spills and dirt and keeping soccer moms dry when sitting on damp spectator benches as they watched their children play. This tactic describes a product in what stage of its lifecycle?
a. Decline
b. Maturity
c. Introduction
d. Growth
Answer:
b. Maturity
Explanation:
In the stage of the produc life cycle at the maturity state the garner should accept from the consumer also the profit should fall plus the growth in sales should begins to slow down. also the marketing revamp is significant in order to protect the production from the competition arise in the market via the rival products
So as per the given situation, the option b is correct
If all preferred dividend payments that have been missed must be paid before any common stock dividend can be paid, the preferred stock is called ________ preferred stock. cumulative participating nonparticipating voting dual class
Explanation:
if all preferred dividend payments that have been missed must be paid before any common stock dividend can be paid, the preferred stock is called hejejejejejeje____ preferred stock. cumulative participating nonparticipating voting dual class
If all preferred dividend payments got missed must be paid before any common stock dividend can be paid, it's called cumulative preferred stock. Thus, the correct answer is A.
What is a stock?A financial instrument that reflects a share of a company's ownership is referred to as stock. This entitles the stockholder to a share of the company's assets and profits in proportion to the amount of stock held.
When compared to equity stockholders, cumulative preferred stockholders receive a higher dividend rate. When it comes to dividend payouts and claims during liquidation, cumulative preference shares take precedence over equity shares.
Therefore, option A cumulative preferred stock is the correct answer.
Learn more about Stock, here:
https://brainly.com/question/14649952
#SPJ2
Jones, Incorporated acquires 15% of Anderson Corporation on January 1, 2020, for $105,000 when the book value of Anderson was $600,000. During 2020 Anderson reported net income of $150,000 and paid dividends of $50,000. On January 1, 2021, Jones purchased an additional 25% of Anderson for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2020 but Jones has deemed it necessary to change to the equity method after the second purchase. During 2021 Anderson reported net income of $200,000, and reported dividends of $75,000.The balance in the investment account at December 31, 2021, is
Answer: $355000
Explanation:
Based on the information given in the question, the balance in the investment account at December 31, 2021, will be:
15% of Anderson Corporation acquired = $105,000
Add: Additional 25% of Anderson Corp. purchased = $200,000
Add: Share of income 2021 = $200,000 × 40% = $80,000
Less: Dividend paid = $75,000 × 40% = ($30,000)
Balance in the investment = $355,000
The Federal Deposit Insurance Corporation was established in 1933, during the Great Depression, to:_________
a) apprehend counterfeiters.
b) help stop bank failures throughout the United States.
c) fund small-scale businesses.
d) provide depositors with a short-term source of funds for low-interest consumer loans.
e) provide a safe place for savings of particular groups of people.
Answer:
b) help stop bank failures throughout the United States.
Explanation:
A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of them being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.
The Federal Deposit Insurance Corporation which is also generally referred to as the FDIC was a New Deal program introduced by President Franklin D. Roosevelt in 1933 and it was designed to prevent bank failures or bank runs and restore the public's faith in the banking system.
Hence, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933 so as to counter or mitigate the problem with bank runs.
Generally, the income generated from the premium payments of insured banks is used to fund or finance the Federal Deposit Insurance Corporation (FDIC).
Additionally, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.
In conclusion, the Federal Deposit Insurance Corporation (FDIC) was established in 1933, during the Great Depression, to help stop bank failures throughout the United States.
If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt to equity ratio for Luther in 2019 is closest to:
Answer:
Explanation:
If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt -equity ratio for Luther in 2006 is closest to ________.
A) 3.45 B) 1.72 C) 0.86 D) 2.41
B) D / E = Total debt / Total equity
Total Debt = Notes payable (10.5) + Current maturities of long-term debt (39.6) + Long-term debt (231.3 ) = 281.4 million
Total equity = 10.2 × $16 = $163.2, so D / E = $281.4 / $163.2 = 1.72
Requirement 1. Identify each account as an asset (A), liability (L), or equity (E). Asset (A), Liability (L), or Equity (E)? a. Interest Revenue b. Accounts Payable c. Calhoun, Capital d. Office Supplies e. Advertising Expense f. Unearned Revenue g. Prepaid Rent h. Utilities Expense i. Calhoun, Withdrawals j. Service Revenue Requirement 2. Identify whether the account is increased with a debit (DR) or credit (CR). Increases with a debit (DR) or credit (CR)? a. Interest Revenue b. Accounts Payable c. Calhoun, Capital d. Office Supplies e. Advertising Expense f. Unearned Revenue g. Prepaid Rent h. Utilities Expense i. Calhoun, Withdrawals j. Service Revenue Requirement 3. Identify whether the normal balance is a debit (DR) or credit (CR). Normal balance is a debit (DR) or credit (CR)? a. Interest Revenue b. Accounts Payable c. Calhoun, Capital d. Office Supplies e. Advertising Expense f. Unearned Revenue g. Prepaid Rent h. Utilities Expense i. Calhoun, Withdrawals j. Service Revenue
Answer:
a. Interest Revenue
Identification: Asset
Increases with: Debit
Normal Balance: Debit
b. Accounts Payable
Identification: Liability
Increases with: Credit
Normal Balance: Credit
c. Calhoun, Capital
Identification: Equity
Increases with: Credit
Normal Balance: Credit
d. Office Supplies
Identification: Asset
Increases with: Debit
Normal Balance: Debit
e. Advertising Expense
Identification: Liability
Increases with: Credit
Normal Balance: Credit
f. Unearned Revenue
Identification: Liability
Increases with: Credit
Normal Balance: Credit
g. Prepaid Rent
Identification: Asset
Increases with: Debit
Normal Balance: Debit
h. Utilities Expense
Identification: Liability
Increases with: Credit
Normal Balance: Credit
i. Calhoun, Withdrawals
Identification: Equity
Increases with: Debit
Normal Balance: Debit
j. Service Revenue
Identification: Asset
Increases with: Debit
Normal Balance: Debit
Requirement 1. Identify each account as an asset (A), liability (L), or equity (E). Asset (A), Liability (L), or Equity (E)..Interest Revenue as follows.
Requirement 1:
a. Interest Revenue - Equity (E)
b. Accounts Payable - Liability (L)
c. Calhoun, Capital - Equity (E)
d. Office Supplies - Asset (A)
e. Advertising Expense - Equity (E)
f. Unearned Revenue - Liability (L)
g. Prepaid Rent - Asset (A)
h. Utilities Expense - Equity (E)
i. Calhoun, Withdrawals - Equity (E)
j. Service Revenue - Equity (E)
Requirement 2:
a. Interest Revenue - Credit (CR)
b. Accounts Payable - Credit (CR)
c. Calhoun, Capital - Credit (CR)
d. Office Supplies - Debit (DR)
e. Advertising Expense - Debit (DR)
f. Unearned Revenue - Credit (CR)
g. Prepaid Rent - Debit (DR)
h. Utilities Expense - Debit (DR)
i. Calhoun, Withdrawals - Debit (DR)
j. Service Revenue - Credit (CR)
Requirement 3:
a. Interest Revenue - Credit (CR)
b. Accounts Payable - Credit (CR)
c. Calhoun, Capital - Credit (CR)
d. Office Supplies - Debit (DR)
e. Advertising Expense - Debit (DR)
f. Unearned Revenue - Credit (CR)
g. Prepaid Rent - Debit (DR)
h. Utilities Expense - Debit (DR)
i. Calhoun, Withdrawals - Debit (DR)
j. Service Revenue - Credit (CR)
To know more about Interest Revenue here,
https://brainly.com/question/32137057
#SPJ6
Kingston Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $420,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $1,500.
Kingston Co. uses the percentage-of-receivables ba
Kingston Co. uses the percentage-of-receivables ba
Collapse question part
Partially correct answer. Your answer is partially correct. Try again.
Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
Answer:
Kingston Co.
Adjusting Journal Entry to record bad debt expense for the year:
Account Titles and Explanation Debit Credit
Bad Debts Expense $2,700
Allowance for Doubtful Accounts $2,700
To record bad debt expense for the year and bring the allowance for doubtful accounts to a credit balance of $4,200.
Explanation:
a) Data and Analysis:
Accounts receivable at the end of the year = $420,000
Allowance for doubtful accounts (credit balance) = $1,500
Estimated uncollectible = 1% of account receivable
New credit balance for allowance for doubtful accounts = $4,200
Adjustment to increase the allowance for doubtful accounts to the above new balance = $2,700 ($4,200 - $1,500)
Bad Debts Expense $2,700 Allowance for Doubtful Accounts $2,700
A firm produces 200 units hourly with $150 in labor costs an hour, $80 in materials costs an hour, and a fixed cost that works out to $20 per hour. First, what are this firm's hourly variable and total costs
Answer:
$230
$250
Explanation:
Variable costs are costs that vary with production
variable cost = labour costs + cost of raw materials
150 + 80 = 230
total cost = fixed cost + variable costs
Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments
230 + 20 = 250
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.
Units of Product Percent of Conversion Added
Beginning Work in Process 282,000 40%
Units started 578,000 100%
Units completed 637,000 100%
Ending Work in Process 223,000 50%
Answer:
Total equivalent units of production = 748,500
Explanation:
This can be computed as follows:
Equivalent units of production (EUP) completed and transferred out = Units completed 100% = 637,000
EUP in Ending Work in Process = Units of Product * Percent of Conversion Added = 223,000 * 50% = 111,500
Therefore, we have:
Total equivalent units of production = EUP completed and transferred out + EUP in Ending Work in Process = 637,000 + 111,500 = 748,500
Lagle Corporation has provided the following information:
Cost per Unit Cost per Period
Direct materials $ 4.60
Direct labor $ 3.40
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 13,200
Sales commissions $ 1.40
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 5,200
For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:____________
a) $9,900
b) $5,200
c) $13,200
d) $15,100
Answer:
Lagle Corporation
For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:____________
d) $15,100
Explanation:
a) Data and Calculations:
Cost per Unit Cost per Period
Manufacturing costs:
Direct materials $ 4.60
Direct labor $ 3.40
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 13,200
Selling and Administrative Expenses:
Sales commissions $ 1.40 $7,700
Variable administrative expense $ 0.40 2,200
Fixed selling and administrative expense $ 5,200
Total period costs (financial reporting) = $15,100
What is the expected after-tax cash flow from selling a piece of equipment if GlivCo purchases the equipment today for $730,000, the tax rate is 35 percent, the equipment is sold in 2 years for $81,000, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 51%, 27%, 15%, and 7%, respectively
Answer: $108,860
Explanation:
Book value at time of sale:
= Cost price - Accumulated depreciation
= 730,000 - ( 730,000 * ( 51% + 27%))
= 730,000 - 569,400
= $160,600
Asset was sold at $81,000 which is a loss of:
= 81,000 - 160,600
= -$79,600
Tax on this loss:
= -79,600 * 35%
= -$27,860
After-tax cash flow:
= Sales price + tax
= 81,000 + 27,860
= $108,860
Most executive information systems include a _____, which integrates information from multiple sources and presents it in a unified, understandable format, often as charts and graphs.
a. digital dashboard
b. decision support system database
c. model base
d. decision support system engine
Answer:
a. digital dashboard.
Explanation:
Management involves the control, planning and organization of the affairs of a business firm.
Basically, the management of an organization is saddled with the responsibility of planning, organizing, controlling and staffing within the organization.
An Executive information system is also referred to as an Executive support system and it can be defined as a management support system that enhances and supports all of the senior executive information and decision-making process.
Hence, most executive information systems (EISs) include a digital dashboard, which is typically used for integrating information obtained from multiple sources and then presents it in a unified, understandable format, often as charts and graphs.
Use T-accounts to record the transactions below, which occur on March 12, 2021, close the T-accounts, and construct a balance sheet to answer the question. 1. Issue $80,000 in stock 2. Borrow $65,000 from a bank 3. Receive payment of $12,000 owed by a customer 4. Pay $6,000 owed to a supplier 5. Buy $17,000 worth of manufacturing supplies on credit What is the final amount in Total Assets
Answer:
The final amount in Total Assets is:
= $156,000.
Explanation:
a) Data and Analysis:
1. Cash $80,000 Common Stock $80,000
2. Cash $65,000 Bank Loan Payable $65,000
3. Cash $12,000 Accounts receivable $12,000
4. Accounts payable $6,000 Cash $6,000
5. Manufacturing supplies $17,000 Accounts payable $17,000
T-accounts
Cash
Account Titles Debit Credit
1. Common Stock $80,000
2. Bank Loan Payable 65,000
3. Accounts receivable 12,000
4. Accounts payable $6,000
Balance $151,000
Manufacturing supplies
Account Titles Debit Credit
5. Accounts payable $17,000
Common Stock
Account Titles Debit Credit
1. Cash $80,000
Bank Loan Payable
Account Titles Debit Credit
2. Cash $65,000
Accounts receivable
Account Titles Debit Credit
3. Cash $12,000
Accounts payable
Account Titles Debit Credit
4. Cash $6,000
5. Manufacturing supplies $17,000
Balance $11,000
Cash $151,000
Manufacturing supplies 17,000
Common stock $80,000
Bank loan payable 65,000
Accounts receivable 12,000
Accounts payable 11,000
Total $168,000 $168,000
Balance Sheet:
Assets:
Cash $151,000
Manufacturing supplies 17,000
Accounts receivable (12,000)
Total assets $156,000
Question 2: Global production company wants to collect data from the computer
buyers. AS A business research, explain which survey method of data collection would
be more appropriate. Justify your answer.
Answer:
ANswer to the following question is as follows;
Explanation:
Companies aim to acquire data from computer customers by surveying their business in the worldwide production market. This kind of data collecting delivers a more comprehensive survey than individual data gathering, is less costly, and saves time, and has a high response rate.
According to the present market circumstances, I recommended utilising a postal survey and in-person interviews study as a company researcher.
What do statistics show about most Americans’ financial management?
Answer:
46%of Americans couldn't come out with $400 in an emergency
It suggests that 46% of all Americans find it difficult to come up with four hundred bucks if there had been to be an emergency. Also, 60% of Americans will face that emergency within one year or less.
Why is it crucial to know about financial management?Financial management helps in enhancing the profitability of organizations, increases the general price of the corporations or organizations, provides financial stability, encourages personnel to store money, and enables them in non-public economic planning.
Hence, this is the statistical information we get about Americans' financial management.
Learn more about financial management here:
https://brainly.com/question/989344
#SPJ2
Assume Sheryl Jenkins wants to accumulate $ 13,241.39 in two years. She currently has $ 10,621.36 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,621.36 today) to have $ 13,241.39 exactly two years from today?
Answer: 11.65%
Explanation:
The $13,241.39 is a future value amount as it is what is to be accumulated in 2 years.
Future value formula therefore applies:
Future value = Current value * ( 1 + interest rate) ^ no. of years
13,241.39 = 10,621.36 * ( 1 + i) ²
(1 + i)² = 13,241.39 / 10,621.36
(1 + i)² = 1.24667556697
1 + i = √1.24667556697
i = 1.116546267 - 1
i = 11.65%
You dragged the forecast into your worksheet as a mark to show the future trend. How can you completely remove it
Answer:
The summary according to the given statement is summarized throughout the below explanation portion.
Explanation:
An approach that uses previous information as the source to anticipate the impact of the proposed developments through an educated manner, is described as Forecasting.Avoiding and prominently display the prediction from either the analysis submenu or option, because then the forecast is erased.The above allows the forecast to ever be withdrawn or eliminated from the spreadsheet altogether.
When the interest rate in an economy decreases, it is likely the result of either a/an ________ or a/an ________.
Answer:
expansionary practice; open market purchase of securities by the Fed.
Explanation:
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Basically, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.
Hence, when the interest rate in an economy decreases, it is likely the result of either an expansionary practice or an open market purchase of securities by the Federal Reserve System (Fed).
According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers
Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's
1. real GDP declined.
2. capital stock increased.
3. production possibilities curve shifted outward.
4. actual production moved from one point to another on a fixed production possibilities curve.
Answer: 1. real GDP declined.
Explanation:
If labor productivity fell yet the workforce did not increase, that means that for Years 1 and 2, workers were producing less than they were producing before because the same number of people were producing.
This means that the amount of goods produced in the country would reduce and therefore GDP would reduce as well as GDP is the amount of goods and services produced in a country. If labor productivity had fallen yet the work-hours had increased, the increase in worker hours would have made up for the loss of labor productivity.
