Renting is is leasing the home monthly for a certain amount & buying is paying in full with mortgage to own the home
Answer:
C) it does not change GDP
Explanation:
The selling of existing homes does not affect the GDP since they were built in previous years. Only the sale of newly built homes increase the GDP.
Only the services provided by real estate agents, appraisers, lawyers, etc. related to the sale of existing homes are included in the GDP.
Answer:
Prepare journal entries to record the tax levy on July 1, 2020, in the General Fund. (Ignore all entries in the governmental activities journal.)
Dr Taxes receivable - current 4,200,000
Cr Allowance for uncollectible current taxes 84,000
Cr Revenues 4,116,000
Prepare a summary journal entry to record the collection of current taxes as of April 30.
Dr Cash 3,900,000
Cr Taxes receivable - current 3,900,000
Prepare a summary journal entry to record the collection of delinquent taxes, interest, and penalties.
Dr Cash 57,800
Cr Taxes receivable - delinquent 53,000
Cr Interest and penalties receivable 4,800
Dr Deferred inflows of resources 57,800
Cr Revenue 57,800
The appropriate response is wages have gone down. The inflation-adjusted return is the measure of restore that considers the day and age's expansion rate. Inflation-adjusted profit uncovers the arrival for a speculation subsequent to expelling the impacts of swelling. Expelling the impacts of expansion from the arrival of a speculation enables the financial specialist to see the genuine procuring capability of the security without outer monetary powers.
Answer:
A stock market crash will cause aggregate demand to decrease, which the Fed could offset by purchasing bonds.
Explanation:
A stock market crash happens when the prices of stocks fall generally and suddenly that investors are taken unawares. It triggers some reactions which further threatens the market overall and depresses aggregate demand. It also weakens investors' confidence, reduces productivity, consumption, and the ability of firms to fund their activities, and leads the economy to recession.
Stock market crashes are triggered by unexpected economic event, catastrophe, or crisis. For example, the collapse of Lehman brothers as a result of bankruptcy. They are further exacerbated by panic reactions, underlying economic underperformance, and investors' fear.
The Fed as the US central bank in charge of the monetary policy can try to stem the downward spiral caused by a stock market crash by purchasing bonds. This makes more money available in the economy for consumption.
Before the crash, the Fed can decide to bail out the institution, e.g. an airline or a financial institution, that could trigger a crash. But, most stock market crashes are not foreseen.