Answer:
A
Explanation:
Discretionary fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
Discretionary fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
If taxes are cut, disposable income increases and demand increases. this is an example of demand side
On the other hand, if a replacement project is undertaken, the demand for labour increases. this is an example of supply side
Contractionary fiscal policies is when the government reduces the money supply in the economy either by reducing spending or increasing taxes
Answer:
the present value is $4,286.69
Explanation:
The computation of the sum received today is shown below:
As we know that
Present value = Future value ÷ (1+rate of interest)^number of years
= $5,000 ÷ (1 + 0.08)^2
= $5,000 ÷ 1.1664
= $4,286.69
hence, the present value is $4,286.69
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
$775
Explanation:
In inventory valuation , inventory are valued at the lower of cost to replace an item of inventory and the net realizable value.
The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.
In the scenario described in the question , The replacement cost for product 66 is $775 while the net realizable value is $800. Therefore , the final inventory valuation will be the lower of $775 and $800 which is $775
Answer:
a.Expenditure on new plants, equipment, and residential construction, plus changes in business inventories.
Explanation:
Gross investment is the punt that is invested in a business without considering depreciation cost. When depreciation is removed we get net investment.
Investment can be in fixed assets (such as new plants, equipment, and residential construction) or on variable assets (such as inventory or working capital).
Gross income is the total amount invested in fixed and variable aspects of the business.
