Accounting Answers

Illustrate a permanent decrease in government spending
(let’s say infrastructure spending freeze) implemented in 2022. For simplicity,
assume there are no time lags.
a). (2 point): To illustrate that shock, use AE/PC Model (carefully labeled!!)
without time lags (use the AE and PC graphs similarly to the textbook, place PC
graph below AE graph). For your analysis, choose as a starting point (marked A)
an economy operating at potential GDP (Y=Y*) and at its inflation target (

Assume that two shocks happen simultaneously: a positive expenditure shock (buy a bigger house) and a positive supply shock (prices on imported inputs decreased dramatically due to a substantial reduction in tariffs). Use AE/PC Model without time lags (use the AE and PC graphs similarly to the textbook, place PC graph below AE graph). For your analysis, choose as a starting point (marked A) an economy operating at potential GDP (Y=Y*) and at its inflation target (

Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
__________________________________________________________________

Suppose the federal fund rate is currently 2% and the term
premium between the federal funds rate and the 1-year rate is equal to 1 percent.
Also, suppose that it is expected that the FOMC will increase the federal funds rate
3 months from now by 50 basic points. Everything else held constant, what is the
value of the 1-year interest rate today?
__________________________________________________________________

What is a ledger statement

11. You work at a firm on Wall Street that specializes in mergers, and you are the team
leader in charge of getting approval for a merger between two major beer manufacturers
in the United States. While Table 7–2 in the text indicates that the four-firm concentration
ratio for all of the breweries operating in the United States is 90 percent, your team has put together a report suggesting that the merger does not present antitrust concerns even though
the two firms each enjoys a 15 percent share of the U.S. market. Provide an outline of your
report. (LO1)

Study the information given below which was made available by Levis Limited and calculate
the following:
2.1 Accounting Rate of Return on average investment of Project A (answer
expressed to two decimal places).

(3 marks)
2.2 Net Present Value of Project A (amounts rounded off to the nearest Rand.) (3 marks)
2.3 Internal Rate of Return of Project B (answer expressed to two decimal
places).

A, B and C are equal partners whose books of accounts closes on 31st March
every year. B died on 30th June. A and c decided to share future profits in the
ratio of 3:2. Which of the following journal entry will be passed for providing
profit of the deceased partner upto the date of death: [1]
(a) Profit and Loss Suspense Account Dr.
To B’s Capital Account
(b) Sacrificing Partners’ Capital Account Dr.
Gaining Partners’ Capital Account
(c) Gaining Partners’ Capital Account Dr.
To Sacrificing Partners’ Capital Account
(d) All partners’ Capital Account Dr.
To Profit and Loss Appropriation Account

On 5th March 2019, Mehta Brothers received 100% advance for goods, to be supplied
in the next month. The Cost of the goods was Rs50000. They usually sells the goods at
10% mark up.

Explain the difference between public sector and public finance