Answer:
It is a result of adverse selection
Explanation:
The economic problem in this story is adverse selection. As in this the person who take the insurance drive uselessly and carelessly . In Coverall, Inc., an insurance company's case insurance company increases premium amount in order to cover this type of customer. It is a result of adverse selection.
A major advantage of the built-in or automatic stabilizers is that they require no legislative action by Congress to be made effective.
<h3>What are automatic stablizers?</h3>
Automatic stabilizers are stabilizers that adjust the economy automatically without the intervention of the congress. An example of an automatic stablizer is taxes.
In an expansion, progressive tax increases the tax paid by citizens and in a contraction, tax paid is reduced and this increases disposable income.
Here is the complete question:
A major advantage of the built-in or automatic stabilizers is that they:
(a) simultaneously stabilize the economy and reduce the absolute size of the public debt.
(b) automatically produce surpluses during recessions and deficits during inflation.
(c) require no legislative action by Congress to be made effective.
(d) guarantee that the federal budget will be balanced over the course of the business cycle.
Answer:
FV= $1,309,832.57
Explanation:
Giving the following information:
Annual investment (1 to 7)= $3,500
Interest rate= 9%
<u>First, we need to calculate the future value of the annual deposit using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,500*[(1.09^7) - 1]} / 0.09
FV= $32,201.52
<u>Now, the value when they are 70:</u>
Number of periods= 70 - 27= 43
FV= PV*(1+i)^n
FV= 32,201.52*(1.09^43)
FV= $1,309,832.57
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
The answer is "Option A"
Explanation:
The given statement is true because it uses the transaction price method. In this process, the amount of evaluation for the company entity continues to earn for the client to convert products or services.
Its quantity may also be fixed, changeable, or coupled, and the price of the payment shall be allocated to its fair value recognized throughout the contract, that's why in this question two gaming system includes with a 1-year free subscription in $400, and the organizations should make the gaming system $192.31 of a $400 bundle sales price.
