<span>Classical economists felt this way because of the idea of 'interest rate flexibility'. This means that the classical economists believed in the idea that the economy would even itself out, or that the economy was 'self-regulating'. This lends itself to the idea that saving would be equal to investment because it does not take into consideration any shift in the economy.</span>
I think the correct answer from the choices listed above is the last option. It would be to purchase of house valued at $150,000 with $25,000 down and a mortgage of $125,000 that would <span> increase your net worth the most. From this option, you would gain the most. Hope this answers the question.</span>
Answer:
A : Stock - Investment ; B : Condominium - Investment ; C : Lab - Investment ; D : Deposit Certificate - Savings
Explanation:
Saving is the amount set aside from income, so as to not get consumed & kept for further usage.
Investment is the addition to capital stock during a period of time.
A. Dina purchases <u>stock</u> in Pherk, a pharmaceutical company : is addition to financial capital stock - So, It is Investment
B. Charles purchases a new <u>condominium</u> in Miami : is addition to real estate capital stock - So, It is Investment
C. Ana borrows money to build a new <u>lab</u> for her engineering firm : is addition to firm capital stock - So , It is Investment
D. Yakov purchases a certificate of <u>deposit</u> at his bank : reflects deposited savings set aside from consumption - So , It is Saving
Answer:
Financial advantage $159,000
Explanation:
unit variable cost = 15 + 12 + 8 + (25%×8) = $37
Note the selling variable cost is now 25% of the initial cost before the special order because of the 75% savings
The fixed cost were not considered in the analysis because they are not relevant. They would be incurred either way, whether the order is accepted or not
Financial advantage of the special order
$
Sales revenue from special order = (6,000× $65) = 390,000
Variable cost ( 6000× $37
) = (222,000
)
Cost of special machine <u>( 9,000)</u>
Financial advantage <u> 159,000</u>
