Answer:
a. the ease with which an asset is converted to the medium of exchange
Explanation:
Liquidity measures how quick an asset can be converted to cash.
Money, cash is the most liquid asset. This is why it can be easily used as a medium of exchange.
Real estate is considered illiquid because it cannot be easily converted to cash.
Stocks are relatively liquid because they can be quite easily converted to cash.
Velocity measures how many times a dollar circulates in a given year.
Money can be used to measure the intrinsic value of a commodity.
The supplier because the tax will decrease demand bcause it is elastic.
Answer:
The correct answer is B
Explanation:
Giving the following information:
The estimate of annual overhead costs for its jobs was $2,050,000.
The budgeted machine hours for the year totaled 40,000.
The company used 1,000 hours of processing on Job No. LKP.
First, we need to calculate the estimated manufacturing overhead rate using the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 2,050,000/40,000= $51.25 per machine hour
Now, we can allocate overhead to Job LKP:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 51.25*1,000= $51,250
Answer:
a) $10 billion
b) <em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents which in turn be re-spent by them.</em>
Explanation:
<em>Expenditure Multiplier is the amount by which the real GDP will change if autonomous expenditure changes by a given amount. </em>
It is calculated as follows: 1/(1-MPC).
MPC is the portion of additional income that is spent. If the MPC is 0.8, then the expenditure multiplier will be = 1/(1-0.8) = 5
Using the information given, if business investment increase by $2 billion, the resulting change in GDP would be
increase in real GDP = 2 billion × 5 = $10 billion
Explanation of the multiplier change in real GDP
<em>Real GDP increases by more than 2 billion because of the multiplier effect. This effect is implies that expenditures by made by one economic agent in a transaction becomes income in the hand of another which in turn be re-spent . This will continue in manifolds thereby increasing the total value of goods and services resulting from a single increase in autonomous spending in multiple fold.</em>
<em>For example, the investment made by the business in this question would become income in the hands of other transacting economic agents.</em>
Answer:
Annual deposit = $8208
Explanation:
Below is the calculation:
Future value of money, FV = $513000
Time period from 39 to 62 = 23 years
Interest rate = 8%
Annual deposit = FV (A/F, n, r)
Annual deposit = 513000 (A/F, 23, 8%)
Annual deposit = 513000 x 0.016
Annual deposit = $8208