When a person receives an increase in wealth, Consumption increases and saving decreases
Both present and future consumption rises as a consumer's current income does as well. Savings increase because current spending increases but does so at a slower rate than current income growth. Again, both present and future consumption rises when the customer receives an increase in predicted future income.
Savings declines because current consumption rises while current income does not. Current and future consumption both grow when the consumer's wealth increases. Again, because current income has not increased, saving has decreased. These individual actions to adjust one's consumption and saving habits have a cumulative effect on the aggregate amount of desired consumption and saving.
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Answer: Is not taxed
Explanation: John owns 500 shares of stock in Catawba Box, Inc. He is the share holder of the company . An equity shareholder is the owner of the company. But for a big public limited company, they raise funds by going public and issuing shares to the public in small tranche. The profit earned by the company is taxable for the company while it is not taxed to the owners or the shareholders of the company as a company is a separate legal entity.
Answer: 5 cups of tea
Explanation:
Opportunity cost is what an individual, firm or government forgoes in order to get something else. For example, an individual might have $2. A pen costs $2 likewise a notebook. If the person decides to buy the pen, the opportunity cost is the notebook which he or she did not buy.
With the money Sarah has, spending her entire budget will give her 40 cups of tea or 8 snacks. This implies that for 1 snack, the opportunity cost is (40/8) = 5 cups of tea
Answer:
$6,100
Explanation:
Data given in the question
Accumulated benefit obligation = $45,900
Projected benefit obligation = $68,100
Fair value of the plan assets = $62,000
So, by considering the above information, the benefit plan recognized is
= Projected benefit obligation - fair value of the plan assets
= $68,100 - $62,000
= $6,100
Hence, the accumulated benefit obligation is ignored
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