Answer:
Increased
Explanation:
In the case when there is a fall in the potential output and at the same time the actual output remains the same so here the fund rate should be increased as per the taylor rule as it decrease the output that result in the output gap to fall
So as per the given situation, the fed fund rate should be increased
Hence, the same is to be increased
Those decisions should be based on COSTS AND BENEFITS.
In making decision on which course to follow, the decision made will be based on the costs of the products involved and the benefits that each one of them has to offer. The product with the lowest cost and the highest benefits should be chosen.
Answer:
the journal entries used to record this transaction are:
Dr Accounts receivable 400
Cr Sales revenue 400
Dr Cost of goods sold 160
Cr Inventory 160
This transaction will increase net income, which increases retained earnings by $240. It will also increase assets by $240, since accounts receivable increases by $400, but inventory decreases by $160.
B
a demand deposit lets you withdraw money without advice notice