Answer and explanation:
a)
This investment tax credit will lead to a surge in the investment demand, because of the benefits that the firms receive from the investment tax credit. More and more firms will undertake investments leading to an increase causing the IS curve to shift to the right.
<em>This implies that the output and GDP will increase in the short run. </em>
(check image file 1 attached)
b)
The increase in the demand for US goods will lead to an increase in the capital inflow for the country, the exports will increase, and the IS curve will shift to the right.
<em>This implies that the output and GDP will increase in the short run</em>
(check the attached image file 2)
c)
US consumers' infatuation with goods and services from New Zealand is going to increase the imports of the country. While it may also reduce the domestic consumption spending. This, however, will affect the country by shifting its IS curve to the left.
<em>This implies that the output and GDP will decrease in the short ran. </em>
(check image file 3)
d)
Though the prices of the houses will fall sharply, increasing the affordability of the houses but the confidence of the people in real estate will be shaken. This would lead to a fall in the housing investment. This fall in investment will shift the IS curve to the left.
<em>This implies that the output and GDP will decrease in the short run.</em>
check image file 4
Answer:
The correct answer is letter "D": Class envy.
Explanation:
In behavioral economics, the endowment effect explains why an individual could give a higher value to an object that posses than giving a low value when the individual does not have it. The approach implies the object has symbolic importance for the individual while having it.
A good example of the endowment effect refers to a teacher that gives one of his classes' students mugs as gifts. The value of the students who received mugs was higher than the value of those who did not get one.
Answer:the opportunity cost of growing another apple tree is 2 orange trees
Explanation:
Opportunity cost represents the value of cost what must be given up toin order to obtain the best alternative.
Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.
that means he can grows 30 apples on the 3 acres and 60 oranges at on the 3 acres. giving us
the opportunity cost of growing an orange tree is
60 oranges ( 30+20+10)trees= 30 apples tress
1 orange tree = 30/60
1 orange tree=1/2 apples
therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees
Answer:
A. Intangible assets
Explanation:
Intangible assets: They refers to assets that are not physical in nature. They are identifiable, non-monetary assets without physical substance such as brand recognition, intellectual property. Intellectual property includes patent right, copyright, and trademarks.
Intangible assets lice brand names are non physical in nature unlike tangible assets that are phsysical. Examples of tangible assets are building, vehicle, land, machineries and furnitures. They are assets that is expected to generate economic return in the future.
There are two classes of intangible assets
1. Identifiable intangible assets: These are intangible assets that can be separated from other assets such as copyright, trademarks and patent.
2. Unidentifiable intangible assets: They are assets that cannot be separated from other assets such as Goodwill.
Answer:
2.43 %
Explanation :
Real Interest rate = (1 + nominal rate) / (1 + inflation rate) - 1
therefore,
Real Interest rate = 1.052 / 1.027 - 1
= 2.43 %
the approximate real rate of interest is 2.43 %
