Tutor profile: Jonathan T.
How is the US Aggregate Demand affected by an increase in the money supply?
The US Aggregate Demand would increase (shift right) given this expansionary monetary policy. Consumer spending will increase and nominal interest rates decrease, overall causing an increase in GDP.
What is the net present value of a project if the cost of capital is equal to the internal rate of return on the project?
The net present value (NPV) is equal to zero.
What are the normal type of balances for the following accounts: assets, liabilities, equity, revenues, and expenses?
Assets: Debit balance, Liabilities: Credit balance, Equity: Credit balance, Revenues: Credit balance, and Expenses: Debit balance.
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