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Hitman42 [59]
2 years ago
13

True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is

expected to be permanent. True False
Business
1 answer:
gavmur [86]2 years ago
5 0

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

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A company has positive cash flows from operating activities, negative cash flows from capital expenditures, and negative cash fl
Shalnov [3]

Growth stage. Profits from the company should be able to comfortably cover overhead and pay employees at this point. Sales are probably rising, and profit margins have risen once capital investments and loans have been repaid by the business.

<h3>What these terms means?</h3><h3>A) Positive cash flow</h3><h3>B) Negative cash flow</h3><h3>C) Dividends</h3>
  • The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow.
  • Money spent and money received represent inflows and outflows, respectively. Fundamentally, a company's capacity to produce positive cash flows, or more specifically, its capacity to maximize long-term free cash flow, determines its ability to create value for shareholders (FCF).
  • When a company has positive cash flow, its net balance on its cash flow statement for that particular period is higher than zero. In other words, the net result of all cash inflows and outflows over this period is positive rather than negative, and as a result, the company's cash reserves are increasing.
  • Because a capital expenditure involves money leaving your company, it has a negative value in comparison to income or revenue. Because they are being deducted from your balance sheet or show as a negative capital expenditure on cash flow statements, capital expenditures are negative.
  • a sum of money that is regularly paid by a business to its shareholders out of its profits (typically once per year) (or reserves) is called Dividends.

To know more about cash flows check this out:https://brainly.com/question/18301012

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8 0
1 year ago
Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today’s three-month forward r
Oksi-84 [34.3K]

Answer:

Assume a speculator anticipates that the spot rate of the franc in three months will be lower than today’s three-month forward rate of the franc, .

a. The speculator can use $1 million to speculate in the forward market by purchasing a forward contract for 2,000,000 francs to be paid out in three months. This helps the speculator avoid losing money as the exchange rate decreases in period of three months.

b. Suppose the franc’s spot rate in three months is $0.40:

This means that the dollar is expected to appreciate in three months because its current rate is. It would take fewer dollars to purchase one franc in three months. The demand for dollars would increase because speculators looking to make a profit would hold as many dollars as possible while waiting for the currency to appreciate, then sell it for more than they purchased it for.

Hence, the speculator could make a profit of $0.10 on each franc.

Suppose the franc’s spot rate in three months is $0.60:

This means that the dollar is expected to depreciate in three months because its current rate is. It would take more dollars to purchase one franc in three months. The demand for dollars would decrease because speculators are expecting the currency’s value to fall in the coming three months.

The speculator would suffer a loss of $0.10 on each franc.

Suppose the franc’s spot rate in three months is $0.50:

This means that the value of the dollar is expected stay the same because its current rate is. It would take the same amount of dollars to purchase one franc in three months. The demand for dollars would remain constant.

The speculator would earn no profit no loss when the Franc’s spot rate in 3 months is $0.50.

Explanation:

7 0
3 years ago
The management of an SBU is addressing the issue of whether through investment and a new
White raven [17]

Using a market development investment-driven strategy, the SBU (Strategic Business Unit) that can be transformed into a star is a question mark SBU.

The characteristics of a question mark SBU are:

  • high growth prospects
  • low market share
  • consumes a lot of cash
  • generates little returns
  • loses money

For the transformation of a question mark SBU, more investments and new strategies have to be brought in.

Thus, a question mark SBU has the highest potential to turn into a star if the market growth is high.

Read more about the BCG growth share matrix at brainly.com

7 0
2 years ago
The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net
jekas [21]

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0
3 years ago
Land doesn't cease to exist, and it's not depreciated or covered by property insurance because of its ______.
Marat540 [252]

Land doesn't cease to exist, and it's not depreciated or covered by property insurance because of its Indestructibility. The property insurance coverage might include homeowners insurance, renters insurance, flood insurance, and earthquake insurance. The exception is high-value and the expensive personal property, which is normally covered by purchasing a "rider" to the policy.

If a claim is made, the property insurance policy will either reimburse the insured for the actual cost of the damage or the cost of replacing the problem. The property insurance can include, among the other things, homeowners insurance, renters insurance, flood insurance, and  the earthquake insurance.

To learn more about insurance, click here.

brainly.com/question/27822778

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4 0
1 year ago
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