Assume Japan begins with its economy running at full employment. If the Japanese government increases government expenditures the AS/AD model shows that in the short run, A. the AD curve will shift out, causing an increase in Japanese output and in the Japanese price level. B. the AS curve will shift out, causing an increase in Japanese output and in the Japanese price level. C. the AS curve will shift out, causing an increase in the Japanese price level, but not change in output. D. the AD curve will shift out, causing an increase in the Japanese price level, but not change in output.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.