Answer:
1. Deflation
-10%
2. In year 1 - 8 baskets
In year 2 - 8.9 baskets
3. The value of money increases
Explanation:
Deflation is a fall in general price levels. The price fell from $10 to $9. It indicates deflation has occured.
Inflation is a rise in price level.
Annual rate = (current year price - previous year price ) / previous year price
(9 - 10) / 10 = -0.1 = -10%
The annual change is negative because price level fell.
$80 would buy $80/$10 = 8 baskets of goods in year 1
$80 Will buy $80/$9 = 8.9 baskets of goods in year 2.
A fall in price levels increases the value of money because less money can buy the same basket of goods. Therefore, the purchasing power of money increases.
A proportional tax, because it is a percentage of a total paycheck
Answer: Option (1) is correct.
Explanation:
If the interest rate in a home country is lower than the U.S rate of interest then the government and firms of home country won't demand for U.S. funds as it will become expensive for the corporations to borrow funds from U.S. at such a higher rate. Hence, less demand for U.S funds.
There is an inverse relationship between the U.S. interest rate and foreign demand for U.S. funds. If there is an increase in the U.S. interest rate as a result foreign demand for U.S. funds decrease. As it will be not affordable for the borrowers to take funds at a higher rates.
Answer:
A) Any of these causes could be a reasonable answer.
Explanation:
When the government needs to spend money on service projects or products, there are many roadblocks in the way.
1. The US House has the "power of the purse," because All Bills for raising Revenue shall originate in the House of Representatives (U.S. Constitution, Art. I, sect. 7)
2. Most State Governments have to approve contracts and vet private industries to complete public works projects.
3. Like all business structures,all of the factors of production need to be in place before work can begin.
Answer:
$7,247.05
Explanation:
The computation of the inventory level is shown below:
But before that first we have to find out the fixed cost per unit which is
= Total fixed manufacturing overhead ÷ production units
= $59,160 ÷ 11,600 units
= $5.1 per unit
Now the inventory level is by taking the difference of net operating income between two methods
= ($127,960 - $91,000) ÷ ($5.1 per unit)
= $7,247.05
Therefore, the inventory is increased by $7,247.05