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Question: Suppose that American firms become more optimistic and decide to increase investment expenditure today in new factories and office space.
a. How will this increase in investment affect output, interest rates, and the current account?
b. Now repeat part (a), assuming that domestic investment is very responsive to the interest rate so that U.S. firms will cancel most of their new investment plans if the interest rate rises. How will this affect the answer you gave previously?
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The entity must give the same treatment to comparable transactions from period to period.
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Agale Combines, Inc. has $40,000 of ending finished goods inventory as of December 31, 2014. If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured?
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