All categories

2 years ago

Which of the following concerns about the national debt are substantive? Check all that apply.

1 answer:

3 0

Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Explanation:

When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.

A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.

You might be interested in

On December 31, 2017, Merlin Company had outstanding 400,000 shares of common stock and 40,000 shares of 8% cumulative preferred

Talja [164]

Answer:

earnings per share = (net income - preferred dividends) / weighted common stocks = ($900,000 - $32,000) / 424,000 shares = $2.05 per share

diluted earnings per share = (net income - preferred dividends) / (weighted average + diluted shares) = ($900,000 - $32,000) / (424,000 + 3,000) = $2.03

Explanation:

Dec. 2017 outstanding common stocks 400,000

outstanding preferred stocks 40,000 x 8% x $10 = $32,000

February 28, 36,000 common stocks were issued

September 1, 9,000 shares were retired

diluted shares 30,000, exercise price $18, market price $20

net income $900,000

weighted common stocks:

400,000 x 12/12 = 400,000

36,000 x 10/12 = 30,000

- 9,000 x 8/12 = -6000

total = 424,000

diluted stocks:

[($20 - $18) / $20] x 30,000 = 3,000 diluted shares

7 0

2 years ago

Firms must typically purchase inputs from suppliers to produce output. What effect might suppliers have on an industry? A. Supp

pav-90 [236]

Answer:

The correct answer is letter "E": If many firms can supply an input comma then suppliers are unlikely to have the bargaining power to limit a firm's profits.

Explanation:

The negotiating power of suppliers determines the level of competition in a market, according to the concept of the <em>five competitive forces</em>. If only a few companies can supply output or if the input is limited, suppliers are likely to have the bargaining power to limit the income of a business.

3 0

2 years ago

A division has the following data: Sales $320,000, Variable costs $200,000, and Fixed costs $140,000. If the division were elimi

pashok25 [27]

Answer:

Effect on income= $120,000 loss

Explanation:

Giving the following information:

Sales $320,000

Variable costs $200,000

Fixed costs $140,000.

None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.

Effect on income= Sales - varaible cost

Effect on income= 320,000 - 200,000= $120,000 loss

4 0

2 years ago

The GoT cups are a fast seller and you need to ensure that you have enough rolls of paper to fulfill demand. The first stage in

jarptica [38.1K]

Answer:

EOQ = 414 rolls

Explanation:

In order to calculate the number of orders to minimize the cost, we should calculate that by using the Economic order quantity model.

DATA

Holding cost = $1.75/unit

Annual demand = 500 rolls x 12 = 6000 rolls

Ordering cost = $25

Formula

EOQ = $\sqrt{\frac{2Cod}{Ch} }$

Where

Co = ordering cost

D = Annual demand

Ch = Holding cost

Solution

EOQ = $\sqrt{\frac{2(6000)(25)}{1.75} }$

EOQ = $\sqrt{\frac{300000}{1.75} }$

EOQ = 414 rolls

They should order 414 rolls to minimize the cost.

4 0

2 years ago

Read 2 more answers

A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales

Svetradugi [14.3K]

Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

= Salaries + commission + Advertising

where,

Salaries = Expected salaries × number of months in one quarter

= $5,000 × $3

= $15,000

Commission = (January sales + February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

= Expected advertising expenses × number of months in one quarter

= $600 × 3 months

= $1,800

Now put these values to the above formula

So, the value would be equal to

= $15,000 + $9,000 + $1,800

= $25,800

3 0

2 years ago