Expansionary monetary policy is more effective in an open economy because: a. open market operations can be used to buy and sell foreign as well as domestic bonds. b. interest rate decreases also reduce the government budget deficit, which reduces the current account deficit and increases demand. c. interest rate decreases also reduce the value of the dollar, which increases net exports and further increases aggregate demand. d. decreases in interest rates have an impact on foreign direct investment, encouraging the construction of factories and the purchase of stocks.

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.