Accounting Principles

Sigfried Company borrows $60,000 on July 1 from the bank by signing a $60,000, 10%, one-year note payable. Prepare the journal entry to record the proceeds of the note. Prepare the journal entry to record the accrued interest at December 31st, assuming adjusting journal entries are made only at the end of the year.)

Intro to Econ

As a member of the Federal Reserve you are speaking with a group of newly elected memners of congress to explain your operations. The members of Congress have asked you to address the following issues. The Federal Reserve has traditionally conducted open market operations through the purchase and sale of government bonds. In particular, could the Federal Reserve conduct monetary policy through the purchase and sale of stocks on the New York Stock Exchange? Do you see any possible drawbacks to such a policy? Suppose the Federal Reserve purchased gold or foreign currency. How would this purchase affect the domestic money supply? [think about open market purchases of governemnt bonds.... click for more

Intro to Econ

Describe three ways in which the Federal reserve can change the money supply. If the Federal Reserve is going to adjust all of these tools during an economy that is growing too quickly, what changes would they make? If the Federal Reserve is going to adjust all of these tools during an economic recession, what changes would they make? What changes, if any, would you make to these tools at the next meeting of the Federal Reserve? Explain why and the benefits/drawbacks of this strategy.

Intro to Econ

In 2003, the International Revenue Service began to mail out refund checks because of the change in the tax law. Economic forecasters predicted that consumption and GDP would increase because of higher refunds on income taxes. Pretend as if you are an economist and explain your thoughts on whether the tax cuts from the past few years have been successful in promoting economic growth or in preventing a deeper decline? Are there other changes to fiscal policy that you feel would have been more successful?

A simple question from environmental economics regarding regulation of externalities.

Why might regulating externalities be a bad idea compared with other alternatives?