There is an inflationary gap
I hope that helped
Answer:
The answer is :
A. Resource market - income
B. Expenditure - product market.
Explanation:
A. Resource market - income
B. Expenditure - product market
The circular flow model shows how money moves through the economy in exchange for goods, services, and resources.
A.
In circular flow of income, households provide inputs to firms through the resource market(matket where households supply land, labor, capital, and entrepreneurship) in exchange for money(income or wages).
B.
Also in circular flow of income, firms receives expenditure from household and this type of market is called product market(which refers to a place where goods and services are bought and sold)
Answer:
correct option is c. $1,364
Explanation:
given data
purchases house = $174,000
cost of the home = $100,000
cost of the land = $74,000
solution
we know that here MACRS depreciation deduction is here on the $100000
because home only residential real property
and land is not depreciated assets
so here depreciation rate is 1.364 %
so that maximum depreciation deduction allowed is = $100,000 × 1.364
maximum depreciation deduction allowed = 1364
so correct option is c. $1,364
Answer:
d. risk resulting from an expected automobile industry shock g
Explanation:
Non systemic risk are risks that can be diversified away. they are also called company specific risk or industry specific risk . Examples of this type of risk is a manager engaging in fraudulent activities and risk resulting from an expected automobile industry shock
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
Answer:
The WACC change if the new tax rate was adopted is - 0.35%
Explanation:
For computing the WACC change, first we have to determine the after tax cost of debt by applying the 40% and 45% tax rate which is shown below:
After tax Cost of debt = Cost of debt × ( 1- tax rate)
For 40% tax rate, it would be
= 7% × ( 1 - 40%)
= 4.2%
For 45% tax rate, it would be
= 7% × ( 1 - 45%)
= 3.85%
The change in WACC would be
= 3.85% - 4.2%
= - 0.35%
