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MArishka [77]
3 years ago
6

James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to

rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
Business
1 answer:
AVprozaik [17]3 years ago
3 0

Answer:

$22,000

Explanation:

Given that

1st house rented = 10,000

2nd house estimated rent = 12,000

Therefore,

The two houses would contribute

= 10,000 + 12000

= $22,000

Note: Rent is considered as consumption and as a result, rent is added into the GDP. Also, in GDP estimation, imputed rent which is the amount a house owner is willing to rent a house away for if he decides to is calculated as part of the GDP.

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aliya0001 [1]

Answer:

price of iPhones decreases

Explanation:

A decrease in price increases quantity demanded but does not  increase demand.

iPhones and Android phones are substitute goods.

Substitute goods are goods that can be used in place of another good.

An increase in the price of androids increases the cost of androids. So, consumers would increases their demand for iPhones.

Because iPhone is assumed to be a normal good. An increase in the price of iPhones would increase the demand for the good.

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls

Data plans and iPhones are complement goods.

Complementary goods are goods that are consumed togethe  

A decrease in the price of data plans would increase the demand for iPhones.

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Yakvenalex [24]

Answer:

7.67%

Explanation:

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tax rate=25%

after-tax cost of debt=10.22%*(1-25%)=7.67%

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Read 2 more answers
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