Franklin had a beginning inventory balance of $3,400 on april 1 and a beginning balance in accounts payable of $15,100. the company desires to maintain an ending inventory balance equal to 10 percent of the next period’s cost of goods sold. franklin makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. prepare an inventory purchases budget for april, may, and june.

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.