Answer:
If the price level in China is rising faster than the price level in the US, this means that the Chinese inflation rate is higher.
two different things will happen here:
1) higher inflation means that Chinese products will be more expensive which will increase the demand for American products. An increase in the demand for American products will appreciate the US dollar, but...
2) Inflation all by itself generally would not alter the exchange rate, but high inflation generally leads to high interest rates. Central banks usually increase interest rates to decrease inflation.
Higher interest rates will usually increase the demand of a currency which result in an appreciation of the local currency against foreign currencies. In this case, the Chinese yuan should appreciate against the US dollar.
Generally the appreciation of a currency due to high interest rates will offset the depreciation due to a negative trade balance.
Answer:
The correct answer is letter "D": is immune from review under the act of state doctrine.
Explanation:
The Act of State Doctrine states that every sovereign state is bound to respect the independence of every other sovereign state, and the courts will not sit in judgment of another government's acts done within its own territory. In the case, as Argentina is no jurisdiction of the United States, the U.S. citizens and businesses who had accounts in the South American cannot rely on U.S. policies to resolve their problems even if the Argentinian government has violated international law.
Answer:
January 1, Year 1 Cash $56017.5 Dr
Discount on Bonds Payable $1732.5 Dr
Bonds Payable $57750 Cr
Explanation:
The value of bonds which are issued at par is denoted by 100. If the bonds are issued at anything above 100 denomination, this means that the bonds are issued at a premium and if the denoted figure is less than 100, like in this question it is 97, the bonds are issued at a discount.
The cash received on the issuance of this bond will be 97% of the face value of the bond and the 3% will be the discount on the issuance of these bonds.
Thus, the cash received is = 57750 * 97% = $56017.5
The discount on Bonds Payable = 57750 - 56017.5 = $1732.5
The journal entry to record the bond issuance and the receipt of cash would be:
Date Account title Debit Credit
Year 1 Cash $56,017.5
Discount on Bonds Payable $1, 732.5 Dr
Bonds Payable $57, 750 Cr
Since the bonds were issued at 97, this means they were issued at a discount. The discount on bonds payable is the difference between the face value and the issue price.
Issue Price = $57,750 x 97%
= $56,017.50
Bond Discount = $57,750 - $56,017.50
= $1,732.50
The journal entry to record the issuance of the bonds on January 1, Year 1, would include:
Debit Cash for the amount received ($56,017.50).
Debit Discount on Bonds Payable for the discount amount ($1,732.50).
Credit Bonds Payable for the face value of the bonds ($57,750).
This entry reflects the receipt of cash and the creation of a liability for the face value of the bonds. The discount account represents the additional interest expense that will be recognized over the life of the bonds.
Find out more on journal entries at brainly.com/question/13312580
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Answer:
Check the explanation
Explanation:
Government needs to fill gap of $64 billions
for economist A
Tax multiplier is 2 so in order to fill a output gap of 64 billions, cut taxes by 64/ 2 = 32 billion
tax have to cut by $32 billions
govt spending multiplier is 8, so spendinh has to increase by 64/8=$8 billions.
for economist B
Tax multipler is 8 so to fill a output gap of 64 billions, cut taxes by 64/ 8= 8 billion
tax have to cut by $8 billions
govt spending multiplier is 4, so spending has to increase by 64/4=$16 billions.
⇒This means that Economist C likely believes that:
- Tax cuts induce investment spending and improve workers incentives.This is because cutting the taxes gives an incentive to the workers to work more.
⇒ A rise in government spending completely crowds out private sector spending, because increased govt spending increases the interest rate, hence private spending is crowded out.
Answer:
$2.82
Explanation:
The CPI is the measure of the average changes in prices of consumer goods and services. The CPI compares current prices and prices at the base year.
CPI is expressed as a percentage. It represents the cost of goods in a given year divided by the cost of goods in the base year multiplied by 100.
In 1970, the movie price was $0.50, and CPI was 38.8%
in 2011, CPI was 218.8%; the movie price will be?
in 1970: $0.50 =38.8%
in 2011: ? = 218.8%
?= 218.8/38.8 x $0.50
?=5.6392 x 0.50
=$2.81896
=$2.82
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Answer:
PV= $749,269.48
Explanation:
Giving the following information:
Every three years= $1000000
i= 10,1%
The first payment will occur 3 years from today.
We need to find what is the present value of the gift
Using the following formula:
PV= FV/[(1+i)^n)
PV= 1000000/[1,101^3]= $749,269.48