Answer:
c. consumption function will shift down.
Explanation:
Consumption function = A + Md
A = autonomous consumption
Md = Marginal propensity to consume
It is usually believed that disposable income is either saved or consumed.
If interest rate increases, consumption would fall because savings would increase.
Consumers woild substitute consumption for savings because consumption would become relatively more expensive.
I hope my answer helps you
Answer:
Method B should be used
Explanation:
Note: See the attached excel file for the calculation of the present worth of Method A and Method B.
From the attached excel file, we have:
Present worth of Method A = –$210,889.85
Present worth of Method B = –$118,011.18
Since the present worth of Method A and B above imply Method A costs more than Method B, Method B should be used.
Answer:
In most cases rental property should be reported as an investment asset. Since, the property most likely a duplex or triplex housing is used in your business to generate income it would be considered a business asset.
Explanation:
Answer:
This means that the wage of $12 per hour is the wage in which labor supply (the workers) and labor demand (that is demanded by firms) meet and reach market equilibrium.
If the wage was raised, for example to $13 or $14 per hour, there would be an oversupply of fast food workers, leading to unemployment. And if the wage was lowered, for example to $12 or $11 per hour, there would be a higher demand for workers than the supply, leading to a labor shortage for some fast food restaurants.
Answer:
a. 2017 2018 2019
Expenses incurred for the year A 36 million 81 million 63 million
Estimated total cost B 180 million 180 million 180 million
% Completion (A/B) C 20% 45% 35%
Revenue recognized for the D 44 million 99 million 77 million
period (220 million * C)
Gross profit (D-A) $8 million $18 million $14 million
b. Yes, the cost-to-cost method provides a good measure of this construction company's performance under the contract.