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Suppose that money demand is flat, as is the case at very low interest rates. a. what does this imply for the slope of the LM curve? b .what does this imply for the slope of the IS curve? c. what does this imply for the slope of the AD curve? d. Draw the AD and AS curves, and assume that equilibrium is at a point where output is below the natural level of output. Suppose that the central bank increases the money stock. What will be the effects on output in the short run and in the medium run? Explain in words.
Prepare dated journal entries to record the transactions shown in question. Assume that Econ did not enter into a forward contract. Prepare dated journal entries to record the transactions question.
Evaluate the equivalent units of production with respect to direct materials and direct labor. Evaluate both the direct labor cost and the direct materials cost per equivalent unit.
What considerations should the owners make in this termination? Should they consider making an S election and then later, terminating the S corporation? If you were their tax advisor, what would you recommend?
ForCo, a foreign corporation, receives interest income of $100,000 from USCo, an unrelated domestic corporation. USCo has historically earned 85% of its income from foreign sources. What amount of ForCo’s interest income is U.S. source?
Determine the firm's cost of retained earnings and the cost of new common equity and determine the break-point associated with retained earnings.
Elucidate the technique the company is using that may constitute a financial shenanigan. Indicate both the technique used and how the auditor should react.
During 2009, Farley wrote off $650,000 of accounts receivable. Credit sales for 2009 were $18,000,000. In its December 31, 2009 balance sheet, illustrate what amount should Farley report as allowance for uncollectible accounts? f common shares is..
Calculate taxable income and prepare the journal entry for current tax payable (the tax rate is 30%) as at 30th June 2014.
Knollwood Corporation issued $300,000 of 30-year, 8 percent bonds at 106 on one of its semiannual interest dates. The straight-line method of amortization is to be used. Illustrate what is the total interest cost of the bonds?
Find out the internal rate of return promised by the new truck to the nearest whole percent. In addition to the data already provided, assume that due to the unique warming racks, the truck will have a $13,000 salvage value at the end of six years...
What are some of major differences in our budget process for "For Profit" and "Not For Profit" organizations?
Calculate the relevant rates that were used by Coca-Cola and PepsiCo in computing their pension amounts. Determine which company you would rather invest in if you were a potential shareholder. Justify your answer.
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