Which of the following contributes to the popularity of the argument that government spending expands employment?

a. the employment generated by the additional spending is not easily seen, while the employment crowded out by taxing, spending, and borrowing is highly visible.

b. the employment generated by the additional spending is highly visible, while the employment crowded out by taxing, spending, and borrowing is largely unseen.

c. higher taxes will be popular if they finance spending that expands employment.

d. the employment generated by the additional spending can be accomplished without increases in taxes or borrowing.

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.