A decrease in aggregate demand causes the price level to fall. If the government takes no action to
counter this, then the actual price level will be below the price level that people expected.
Individuals will eventually correct their expectations of the price level. As they do so, prices and
wages will adjust accordingly, shifting the aggregate supply curve to the right (down). For example
if wages are sticky, in light of the lower price level, firms and workers will eventually make bargains
for lower nominal wages. The reduction in wages lowers costs of production, so firms are willing to
Answer:
VF= $143.801,78
Explanation:
Dada la siguiente información:
Deposito mensual (A)= $2.500
Cantidad de periodos (n)= 4*12= 48 meses
Interes mensual (i)= 0,09/12= 0,0075
<u>Para calcular el valor futuro (VF), debemos usar la siguiente formula:</u>
VF= {A*[(1+i)^n-1]}/i
VF= {2.500*[(1,0075^48) - 1]} / 0,0075
VF= $143.801,78
Answer:
9.635%
Explanation:
We shall use a table to compute different values as shown below.
<u>Investment</u> <u>Return</u> <u>Taxable amount</u> <u>Tax Rate</u> <u>After-tax return</u>
Dividend 9.8% 30% (n1) 18% 9.2708% (w1)
Municipal bond 8.8% 0% 18% 8.8%
Corporate bond 11.75% 100% 18% 9.635% (w2)
The after tax return with on the best investment alternative is 9.635% for corporate bonds
<u>Workings</u>:
W1
9.8 *0.3*0.18 = 0.5292%
Return after tax = 9.8% -0.5292% = 9.2708%
w2
18.75*0.18 =2.115%
Return after tax = 11.75% -2.115% = 9.635%
<u>Notes:</u>
n1 : 70% of the dividends are excluded from taxation. Only 30% is to be taxed
Answer:
$300
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)
= 6/12 * $600
= $300
The insurance expense on the annual income statement for the first year ended December 31 is $300.
Answer:
Huduko Inc.
The number of servers in this system is:
= 200.
Explanation:
a) Data and Calculations:
Utilization rate = 30%
Interarrival time of jobs = 8 milliseconds (0.008)
Coefficient of variation = 1.5
Average jobs waiting in the queue to be served = 20
Number of jobs in process = 60
Number of servers processing the 60 jobs = 60
Since the number of servers processing at a time is 60 with a utilization rate of 30%, it means that there are 200 servers in the system (60/30%).