2. The Is - LM -UIP Model Consider an economy that experiences an increase in consumer confidence. Let UIP stand for the uncovered interest parity condition. Suppose the economy has a flexible exchange rate. In an IS - LM - UIP diagram, show the effect of the increase in consumer confidence on output, the interest rate, and the exchange rate. ( You must draw the graphs) b. (Following (a)) How does the change in the exchange rate, by itself, tend to affect output? Does the change in the exchange rate dampen (make smaller) or amplify (make larger) the effect of the increase in confidence on output? Suppose instead the economy has a fixed exchange rate. In an IS - LM -UIP diagram, show effect of the increase in consumer confidence on output, the interest rate. What must happen to the money supply in order to maintain the fixed exchange rate? ( You must draw the graphs) d. How does the effect on output in this economy, with fixed exchange rates, compared to the effect you found for the economy for part (a), with flexible exchange rates?

Q: How is ARR calculated?

A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…

Q: can you also explain what part is a. b. and c. please

A: A budget is an estimate of amount which is prepared by the management for various planning and…

Q: What do you mean by put option? Explain in 2 - 3 sentences

A: A Put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: Define and expain

A: Detailed Explanation of Nursing1. Patient Care:Direct Care: Nurses provide hands-on care to…

Q: Question 4 a/ Which three term structure facts should a good theory explain?

A: A good theory of the term structure of interest rates should explain the following three facts:

Q: D. Compute the following cost: i Prime cost ii. Conversion cost iii. Inventoriable cost iv.…

A: Since it was asked to solve part D and E. D and E part has been solved.

Q: A figured out

A: Pre determined Overhead rate Calculation  Overhead cost  $      28,80,000 Divided By  Direct…

Q: What is the after announcment?  This is from question a.

A: Debt Value = $2,700,000Current Debt-to-equity ratio = 30%Increased Debt-to-equity ratio = 50%EBIT =…

Q: What is the SML? What is the CAPM? What is the APT?

A: Security Market Line (SML):The Security Market Line (SML) is a graphical representation of the…

Q: b/ Which theory best explains these three term structure facts?

A: The three term structure facts that are commonly referenced in finance literature are: The yield…

Q: How about the second question?

A: As per the accounting standard- the effects of changes in foreign exchange currency, income and…

Q: is part b answered in this?

A: Ledger posting. : When any transaction is made journal entry is passed, after that those entries are…

Q: CCA

A: Introduction: The term capital cost allowance or CCA refers to the tax term with a view to claim…

Q: How do I add an excersise to my qbw?

A: Exercise can add to QBW by open up the exercise that we wish to add to our workout by going to…

Q: Can i see the exact working out for 2a

A: FIFO stands for First in First Out which is the inventory method states that the inventory which is…

Q: What is this question answer?

A: Net realizable value = Estimated Selling Price -  Cost of Completion and Disposal where, Cost of…

Q: Please provide me the solution with explanation of  d,e,f and G

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: How about the last question?

A: Here,Operating Cash Flow is $63,745Cash Flow to Creditors is $22,100Cash Flow to Stock Holders is…

Q: Explain put option

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: how do you calculate the answers for question a

A: On reading the 4th line of the question, we came across a statement "The company currently absorbs…

Q: can you solve by ansewring the question'a in a fromual.

A: Data given: Costs  of house(Purchase price) =$250,000 Down payment = 2% of the purchase price.…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.