Answer:
The equilibrium price level will double.
Explanation:
Suppose that the economy has a money supply of $4 billion and the income velocity of money is 8, the price level will be 4 and the real GDP is $8 billion. The formula we are using is:
- Money supply x velocity = price level x real GDP
If the money supply remains the same ($4 billion), the income velocity of money is 16 (it doubles), and the real GDP is $8 billion, then the price level will be:
$4 x 16 = price level x $8
$64 = price level x $8
price level = $64 / $8 = 8
So the price level has doubled to 8.
Answer:
b) The progressive income tax system
Explanation:
The tax is compulsory contribution levied by the authority in a territory on goods, services, income and profit.
Proportional income tax :Income tax is said to be proportional where the same tax rate is paid by all irrespective of their income bracket.
A progressive income tax is that where the tax rate becomes higher for those income earners in the high income bracket. The tax rates on every dollar earned becomes higher with increase in income.
The regressive income tax is where a lower percentage is paid as tax as the income income increases. Lower rate is paid on additional dollar earned.
The scenario in the question falls under the concept of progressive income tax system
Answer: $252,875
Explanation:
This concerns a value in future (2 years) so the future value formula can be used;
= 350,000 * ( 1 - 15%) ²
= $252,875
House will be worth $252,875 at the end of 2 years if it declines in value at 15% per year.
Answer:
Examine the reliability of the process.
Explanation:
As a high end clothing company, it is a very good initiative and welcoming to have clothes that possibly posses global version and global value so it is good for such routine checks to be done. This could be tedious and cost the company more than usual.
In this case where there are a reasonable amount of such clothes failing these routine checks, it is not too good for the company as more re-evaluations are to be done in order to cub the rate at which this is in the last six months. This process of examining the reliability process is the company's best bet to tackle the issue they have at hand.
Answer:
B) $56,130
Explanation:
The cash flow statement shows how the company's operating, investing and financing activities affect the flow of cash by generation or use.
The investing activities section is where the purchase of fixed assets and the amount received for the disposal of these assets are accounted for.
Given that a gain was realized and the book value of the asset was given, the amount received for the disposal
= $5,278 + $50,852
= $56,130
This is the amount that will be reported in the investing activities section of the statement of cash flows as an inflow.
