Answer:
These are the options for the question:
a. lowering GDP
b. raising GDP
c. leaving GDP unchanged
And this is the correct answer:
b. raising GDP
Explanation:
Going out to eat at a fast food restaurant such as McDonald's is usually (not always) more expensive that buying groceries, and preparing meals at home. This means that eating out increases spending, raising GDP.
Eating out also increases spending on gasoline, tips to waiting staff, and even on merchandise, because it is frequent that parents buy toys to kids while eating out. All this actions contribute even more to increasing GDP.
Answer:
A is the correct option.
Explanation:
Lease payment is similar to rent which is dictated under the contract between the two parties, which grants participants the legal right for using the real estate holding computers, software and other assets for a specified period of time. The time period for paying lease payment can range a monthly basis to long lengths of 100 years or more. The lease payment is decided by factors such as assets' value, discount rates, and the lessee's credit score.
When the economy is hit with a supply shock, especially if it is something as important as the oil, and its price doubles or triples, than the whole economy will suffer.
The reason for that is that the oil (since we took it as example) is not influencing only the people and the companies that use as fuel, but it affects the prices of pretty much all products. Such an increase in the price will result in much bigger expenditure by the production facilities. The transportation companies will also have much increased expenses. And that will result in a much increased price in most of the products. That will hit the people very hard on their pockets, as they will come in a situation where their wages are the same as they were, but the prices of everything went significantly up in no time.
Answer:
The correct answer is A. Orlando, Inc. incurred more debt specifically in its revolving line of credit.
Explanation:
The formula for the times interest-earned (TIE) ratio is:
TIE = Earnings Before Interest and Tax / Total Interest Payable
This ratio would decrease when the company's earnings decrease or when its interest payable increases, or when both occur simultaneously.
Considering option A, if Orlando Inc. incurs more debt in its revolving line of credit, it means it has to pay more interest. Therefore, when the company's Earnings Before Interest and Tax remain constant while its Total Interest Payable rises, its TIE ratio would fall.
This is exactly what happens as Orlando Inc.'s TIE ratio falls from 20.56 in 2018 to 7.35 in 2019. Hence, option A is correct. Options B to D would either cause the TIE ratio to rise or remain unaffected.
Answer:
The correct approach will be "decreases, decreases."
Explanation:
- The investment tax incentive helps corporations to exclude a portion of the expense including its investment towards taxes. This raises disposable income unintentionally. This increase in household inflation rate is contributing to something like an increase in the rate of trade.
- As either the significance of the domestic country's currency, export industries decreasing trend as well as imports rise, resulting throughout a decline throughout the terms of payment. The capital flows grow and indeed the outflow declines even as actual interest rates go up, the decline in net investment output.
