Answer:
The question has below options:
A. The unsold cars count as inventory investment for 2017. 2018 GDP is not affected.
B.The unsold cars count as consumption spending in 2018.
C. The unsold cars count in the inventory investment category for both years and count as consumption spending in 2018.
Option B is the correct answer
Explanation:
The unsold stock of 10 cars in 2017 is classified as investment since the cost of producing them is expected to yield returns in 2018 when they have been sold.
However, the unsold stock of 2017 becomes 2018 consumption of GDP since it relates to household expenditure in 2018, as a result it is accorded such classification.
It cannot be classified as government expenditure as the government is not the one purchasing the vehicle
Also, the ten cars have nothing to do with import or export as they are trade within the domestic economy
Answer:
PV= $22,677.03
Explanation:
Giving the following formula:
Number of periods (n)= 9 years
Annual payment (A)= $3,800
Discount rate (i)= 12%
<u>First, we will calculate the future value of the payments using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
FV= {3,800*[(1.12^9) - 1]} / 0.12 + {[3,800*(1.12^9)] - 3,800}
FV= 56,147.49 + 6,737.7
FV= $62,885.19
<u>Now, the present value:</u>
PV= FV / (1 + i)^n
PV= 62,885.19 / (1.12^9)
PV= $22,677.03
Answer:
the Federal Reserve creates dollars and uses them to purchase government bonds from the public.
Explanation:
The money supply is increased by the Federal Reserve Open Market Committee under expansionary monetary policy actions to increase the level of aggregate demand in the market and push the level of output when business activity in the economy is low and the economy is experiencing a recession.
The FOMC creates dollars and uses them to purchase government bonds from the public that injects money in the market by increasing the credit creation capacity of commercial banks. As the money supply increases, the spending capacity of consumers is increased, either by lowering the cost of debt on their credit cards or by increasing employment in the market with increased investments by firms as they borrow with greater zeal when the cost of borrowing is low.
Answer: my reaction would probably not be good
Explanation:
Materials are any single item utilized when conducting scientific experiments. Apparatus is a collective group of items combined to perform experimental projects that do not have consumption. An example of a material would be water. Examples of apparatus would be thermometers or other instruments.
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